Tarheel, Inc. has 2.5 million shares of common stock outstanding and 100,000 shares of preferred stock. The preferred stock pays annual cash dividends of $5 per share, and the common stock pays annual cash dividends of $0.25 per share. Last year the company had net income after tax of $6,850,000. The company's balance sheet shows total assets of $78 million, total liabilities of $32 million, and $5 million in preferred stock. The current price of the firm's common stock is $45 per share. What is the firm's current EPS and price-to-earnings (P/E) ratio?

	a.	EPS = $2.24; P/E = 20.09
	b.	EPS = 1.87; P/E = 24.06
	c.	EPS = $2.00; P/E = 22.00
	d.	EPS = $2.74; P/E = 16.4
	e.	EPS = $2.54; P/E = 17.72