Smalley, Inc., has preferred and common stock outstanding as follows: $5 preferred stock, 40,000 shares @ $100 par value.................$4,000,000 Common stock, 500,000 shares at $10 par value....................... 5,000,000 Additional paid-in capital on common stock................................ 800,000 Retained earnings....................................................................... 1,750,000 Calculate the book value on common stock, assuming preferred dividends are cumulative and are currently one year in arrears