In 2021, Olaf Inc. reported net income of $250,000, and did not declare any dividends. Olaf Inc. has 12% cumulative preferred shares in the amount of $120,000 on its balance sheet. In the past, the company typically paid out $37,500 common dividends every year. During 2021, Olaf Inc. had a weighted average of 160,000 common shares outstanding. Calculate Olaf Inc.s 2021 earnings per share.

a. $1.24

b. $1.47

c. $0.81

d. $1.33

e. $1.56