Barbur, Inc. reported net income of $7.75 million. During the year the average number of common shares outstanding was 3.1 million. The price of a share of common stock at the end of the year was $5. There were 440,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative.

The EPS is approximately:

Multiple Choice

$0.40.

$2.26.

$2.36.

$2.50.