Payout Ratio and Book Value per Share Divac Company has developed a statement of stockholders' equity for the year 2017

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Payout Ratio and Book Value per Share Divac Company hasdeveloped a statement of stockholders' equity for the year 2017 asfollows: Preferred Stock Paid-In Capital— Preferred Common StockPaid-In Capital— Common Retained Earnings Balance, Jan. 1 $100,000$50,000 $400,000 $40,000 $200,000 Stock issued 100,000 10,000 Netincome 87,000 Cash dividend -45,000 Stock dividend 10,000 5,000-15,000 Balance, Dec. 31 $110,000 $55,000 $500,000 $50,000 $227,000Divac’s preferred stock is $100 par, 8% stock. If the stock isliquidated or redeemed, stockholders are entitled to $120 pershare. There are no dividends in arrears on the stock. The commonstock has a par value of $5 per share. Assume that the commonstockholders have a right to the total net income of $87,000.
1. Determine the book value per share of Divac’s common stock.Round the book value per share to two decimals.