Roscovis Corporation's December 31, 20X6, equity section follows: Stockholders' Equity Capital stock: Preferred stock, $100 par value, callable at 105, 4%, cumulative, 200,000 shares authorized, 50,000 shares issued and outstanding $ 5,000,000 Common stock, $2 par value, 1,000,000 shares authorized, 400,000 shares issued and outstanding 800,000 $ 5,800,000 Additional paid-in capital: Paid-in capital in excess of par -- preferred stock $ 50,000 Paid-in capital in excess of par -- common stock 4,000,000 4,050,000 Total paid-in capital $ 9,850,000 Retained earnings 7,400,000 Total stockholders' equity $ 17,250,000 Roscovis Corporation has annually paid all preferred dividends. There were no changes in paid-in capital during all of 20X6. The beginning retained earnings was $5,400,000. The ending balance of retained earnings is the result of $3,000,000 in net income and $1,000,000 in total dividends. Determine the maximum price you would pay for a share of common stock in Roscovis if you have the following investment constraints: Maximum Price/Earnings Ratio 15 X Maximum Multiple of Book Value 3 X Minimum Dividend Yield 3%

Maximum price based on a P/E ratio of 15: Maximum price based on a price to book value of 3: Maximum price based on a minimum dividend yield of 3%: