3-During the current year, East Corporation had 3 million shares of common stock outstanding. 2,600, 9% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $9 million and net income of $5.4 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS? (Round your answer to 2 decimal places. Do not round your intermediate calculations.)

Multiple Choice

• $1.84.

• $1.82.

• $1.78.

• $1.80.