Kaniga LTD Had Earnings Before Taxes of $96,873

Kaniga LTD had earnings before taxes of $96,873. Interest expense was $57,289. The company had a tax rate of 38%. The company had 10,000 6% cumulative preference shares outstanding with a market value of $50,000. Authorized ordinary shares were 50,000, however only 35,000 were outstanding. Market value of the ordinary shares was $60,000. Compute basic EPS.

A) 2.73
B) 2.68
C) 1.71
D) 1.66
E) 1.16
F) 1.02