Clem Co. reported net income of $12.5625 million. During the year the average number of common shares outstanding was 3.35 million. The price of a share of common stock at the end of the year was $5. There were 540,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative. The EPS is approximately:

Multiple Choice

A)$3.75.

B)$3.61.

C) $3.51.

D) $0.27.