Lane Corporation is planning a bond issue to finance a new project. Lane plans to issue 2000 bonds with a face value of $1000 each and a coupon rate of 7%. The tax rate is 40%. Projected earnings after completion of the project are $2 million and shares outstanding are 200,000. What is the projected EPS after completion of the project?

Select one:

a. $4.44

b. $5.44

c. $5.58

d. $5.68