ABC Company has the following selected securities outstanding all year:

Preferred stock, cumulative, 5%, $100 par, 3,000 shares

Common stock, $1 par, 18,000 shares

Bonds payable, $80,000 value, 7%, convertible into 2,000 shares of common stock

Additionally, net income for the year is $79,200; the income tax rate is 30%.

What is ABCs diluted EPS, rounded.

Bonds are antidilutive $3.41 $3.01 $3.49