Fact Pattern: Peters Corp.s capital structure was as follows: December 31 Year 7 Year 8 Outstanding shares of stock: Common 100,000 100,000 Convertible preferred 10,000 10,000 9% convertible bonds $1,000,000 $1,000,000 During Year 8, Peters declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock, and the 9% bonds are convertible into 30,000 shares of common stock. Assume that the income tax rate is 30%. If net income for Year 8 is $350,000, Peters should report DEPS as

$3.20

2.95

2.92

2.75