John Michael Company has net income of $560,000 and 200,000 shares of common stock outstanding. The company is considering a project that requires $840,000 and is considering two options: Option 1 is to borrow $840,000 at 12%. Option 2 is to issue an additional 200,000 shares of common stock for $840,000. 0 Management believes that the funds raised can be used to increase income before interest and taxes by $490,000 each year. The company estimates income tax expense to be 40%. What would be the earnings per share of each plan. (Round answers to the nearest cent.) OA. $3.28 option 1, $2.14 option 2 OB. $3.28 option 1, $4.27 option 2 OC. $3.97 option 1, $4.27 option 2 OD. $3.97 option 1, $2.14 option 2