ABC Company currently has 1,000,000 common shares in circulation which trade on the stock exchange at $ 22 per unit and bonds with a face value of $ 3,000,000 (annual coupon rate: 9%). The company is considering a major expansion program of $ 5,000,000 and is considering the following three financing possibilities: An issue of common shares bringing the company net $ 20 per share. An issuance of preferred shares net the company $ 100 per share and with an annual dividend per share of $ 11. An issue of bonds maturing in 20 years at an annual coupon rate of 12%. The companys tax rate is 40%, and the company expects an EBIT of $ 2,500,000. If the company opts for bond financing, then EPS will be roughly:

a)1.34

b) no response

c) 0.98

d) 1.11

e)1.07