Please help me understand the step by step to reach the answer:

In the fiscal year $2021,$ Horizon Enterprises reported having $400,000$ shares of common stock and $40,000$ shares of $5\%$ cumulative preferred stock on the books. The par value for each preferred share was set at $$100.$ Throughout the year, Horizon opted not to distribute dividends.

For the year ending on December $31,2021,$ Horizon Enterprises announced a net income totaling $$3$ million, with an income tax rate fixed at $30\%.$ On the first day of the year, Horizon awarded $8,000$ stock options to its senior management team, where each option allowed the bearer to purchase $25$ shares of common stock at a fixed price of $$25$ per share. These options were set to vest following a period of one year. Over the course of $2021,$ the average market price for the common stock was $$28$ per share.

Based on the information provided, calculate the diluted earnings per share $($EPS$)$ for Horizon Enterprises in $2021,$ rounded to the nearest cent.

a$.$ $$5\mathrm{.}65$

b$.$ $$7\mathrm{.}05$

c$.$ $$6\mathrm{.}25$

d$.$ The information given does not suffice to calculate the diluted eps. $($answer$)$