Assume the following facts are about a parent and its 75% owned subsidiary company:

	Parent	Subsidiary
Net income	$200,000	$75,000
Common shares outstanding	45,000	30,000 (22,500 = 75% owned by parent)
Convertible Preferred Stock	Dividends = $25,000 Convertible into 5,000 shares of common stock
Convertible Bonds		Interest expense after tax = $5,000 Convertible into 4,000 shares of common stock

What is the diluted earnings per share?

Select one:

A. $4.00

B. $6.18

C. $2.35

D. $5.06