1. McRib Enterprises reported the following information at December 31:

Preferred Stock, $5 par, 10,000 shares authorized	$42,000
Additional paid-in capital preferred stock	10,500
Common stock, $1par, 6,000 shares authorized	4,600
Additional paid-in capital common stock	9,700
Retained earnings	21,000
Treasury stock, at cost of $4 per share	(4,000)
Total	$83,800

What is the average selling price for each share of preferred stock?

1. $4.00
2. $5.00
3. $6.50
4. $5.70
5. $6.25