Operating income 900,000 Interest Expense 100,000 Income before 40% income tax 800,000 Net income 480,000 Preferred stock dividends 200,000 Net income available for common shareholders 280,000 Commons shares outstanding 120,000 What is the basic earnings per share?

a. 2.3

b. 2.6

c. 3.0

d. 4.1