For the year ended $2020,$ ABC Company has $$1,250,000$ of debt with an annual interest rate of $8\mathrm{.}1\%,$ $$2,000,000$ of preferred stock with an annual preferred dividend rate of $9\mathrm{.}7\%,$ $$3,500,000$ of common stock $($total book value$),$ and $250,000$ common shares outstanding.

In $2021,$ the company plans to raise $$500,000$ external capital to fund a new project through a term loan with an interest rate of $9\mathrm{.}1\%.$ The new loan's sinking fund provision requires the loan to be fully amortized over the next $5$ years, commencing in $2022.$ The company expects that the existing debt and preferred stock will not be retired until the year $2026$; hence, they will remain in the same amount in $2021.$ If the project goes as planned, the company expects $$1,200,000$ of EBIT in $2021.$ The company's tax rate is $40\%.$

What will the expected earnings per share under the new debt alternative be$?($Hint: Perform EBIT$-$EPS Analysis in the long$-$term financing decisions.$)$

Group of answer choices

$$1\mathrm{.}82$

$$1\mathrm{.}78$

$$1\mathrm{.}72$

$$1\mathrm{.}75$

$$1\mathrm{.}85$