Burckel Corporation had 260,000 shares of common stock and 26,000 shares of 7%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $720,000 and dividends were paid to both common and preferred shareholders. Burckel's effective tax rate is 25%.

Each share of preferred stock is convertible into five shares of common stock. What is Burckel's diluted EPS (rounded)?

Multiple Choice

$4.40

$2.52

$1.85

$3.47