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During 2 0 2 0 , Crystal Inc. had 5 0 0 , 0 0 0 shares of common stock and 5 0 , 0

During 2020, Crystal Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Crystal didn't declare or pay any dividends during 2020. Crystal's net income for the year ended December 31,2020 was $2.5 million. The income tax rate is 40%. Crystal granted 10,000 stock options to its executives on January 1, of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2020. What's Crystal's basic earnings per share for 2020, rounded to the nearest cent? A. $5.00, B.$3.14, C. None of these answer choices are correct, or D. $4.40.

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