At December 31, 2007, Gravin Corporation had 90, 000 shares of common stock and 20, 000 shares of convertible preferred stock outstanding, in addition to 9% convertible bonds payable in the face amount of $2,000,000. During 2007, Gravin paid dividends of $2.50 per share on the preferred stock. The preferred stock is convertible into 20, 000 shares of common stock. The 9% convertible bonds are convertible into 30, 000 shares of common stock. Net income for 2007 was $970, 000. Assume an income tax rate of 30%. How much is the diluted earnings per share for the year ended December 31, 2007? a. $7.83. b. $8.82. c. $9.35. d. $10.22.