"Early in 2005, Herndon Industries was formed with authorization to issue 200,000 shares of $10 .par value common stock and 30,000 shares of $100 par value cumulative preferred stock. During 2005, all the preferred stock was issued at par, and 120,000 shares of common stock were sold for $16 per share. The preferred stock is entitled to a dividend equal to 10 percent of its par value before any dividends are paid on the common stock. During its first five years of business (2005 through 2009), the company earned incomes totaling $3,700,000 and paid dividends of 50 cents per share each year on the common stock outstanding. On January 2, 2007, the company purchases 20,000 shares of its own common stock in the open market for $400,000. On January 2, 2009, it reissued 10,000 shares of this treasury stock for $250,000. The remaining 10,000 were still held in treasury at December 31, 2009.
Instructions:
As of December 31, compute Herndon’s book value per share of common stock.