On December 31, Schmid Corporation reports the following amounts in the stockholders' equity section of the balance sheet:

5% Preferred Stock, $50 par ...................... $1,000,000 Common Stock, $20 par ............................ $4,000,000 Paid-in Capital Excess of Par--Common ..... 3,000,000

Retained Earnings ..................................... 4,325,000

Treasury Stock, 50,000 shares ................... (200,000)

There are no preferred dividends in arrears. What is the book value per share?

A. $74.17 (The Correct Answer)

B. $4.00

C. $20.00

D. $24.00

* When doing the calculation, I keep getting a book value of $55.63. I used the following equation:

(Common Stock + Paid-in Capital + Retained Earnings - Treasury Stock) / Common Shares Outstanding