Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018. The company paid $30,000 in common stock dividends during the year. The company has 200 convertible bonds outstanding that have a coupon rate of 8% and a par value of $1,000 per bond. Each bond can be converted into 150 common shares. The company's tax rate is 30%. What was the company's diluted earnings per share (EPS) in 2018?

a. $3.078

b. $3.134

c. $3.217

d. $3,330

e. $3,564