At 12/31/18 and 12/31/19, Hale Corp. had 600,000 shares of common stock outstanding and 40,000 shares of preferred stock outstanding (5%, $100 par value, noncumulative). No dividends were declared on either the preferred or common stock in 2018 or 2019. Net income for 2019 is $3,000,000, and the income tax rate is 35%. For 2019, basic EPS equals

a. $4.33.

b. $4.67.

c. $4.78.

d. $5.00.