10. ABC Company had EBIT of $5,000,000. It had bonds with a face value of $4,000,000 outstanding, priced at 105, with a 6% coupon. In addition, it had 500,000 $25 par value preferred shares with a 5% dividend yield and its corporate tax rate is 35%. If it has 1,000,000 common shares authorized and 800,000 shares issued and outstanding, its EPS is closest to

a) $3.09

b) $3.36

c) $3.87

d) What did I do to deserve this?