ABC Company currently has 1,000,000 shares of common stock outstanding, trading at $22 per share, and $3,000,000 face value of bonds (9% annual coupon rate). The company is considering a major expansion program of $5,000,000 and is considering the following three financing options for this purpose: An issue of common shares yielding $20 per share net to the company. An issue of preferred shares at a net yield to the company of $100 per share with an annual dividend per share of $11. A bond issue maturing in 20 years with an annual coupon rate of 12%. The company's tax rate is 40%, and it expects EBIT of $3,000,000. If the company opts for the bond financing, then the EPS will be approximately :

a) 1.34$

b) 1.07$

c) None of the above

d) 0.98$

e) 1.28$