Company ABC currently has 1,000,000 common shares in circulation that trade on the 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 to this end considers the following three financing options: A common share issue that clearly earns the company $20 per share. An issue of preferred shares that netly earns the company $100 per share and whose annual dividend per share would be $11. A bond issue due in 20 years at the annual coupon rate of 12%. The company's tax rate is 40%, and the company provides for an IB| of $3,000,000. If the company opts for bond financing, then the EPS will be approximately :

a)098 b)1.34 c)1.07 d)None e) 1.28