For the fiscal year-end, CWC reported net income of $12 million and weighted average of 2,000,000 common shares outstanding. The company paid $800,000 in preferred dividends and had 100,000 options outstanding with an average exercise price at $20. CWC's market price over the year averaged $25 per share. CWC's diluted EPS is close to: (Assume the preferred shares are not convertible.) \begin{tabular}{c} $5.60. \\ \hline$5.38 \\ \hline$6.00 \\ \hline$5.54. \end{tabular}