During 2009, Solar Corporations earned profits amounting to $4.5 million and paid preference dividends amounting to $100,000. The company had 3.5 million shares outstanding throughout the year with an average market price of $50. It also had 50,000 stock options outstanding, which had an exercise price of $40. Given that the market price of the companys shares at yearend was $60 and that the company pays taxes at the rate of 35%, its diluted EPS using the treasury stock method is closest to: