Harvey Inc. has 1,000,000 shares of $1 par value common stock outstanding at January 1. On July 1, Harvey repurchased 100,000 shares at a cost of $22 per share. In addition, at December 31, 2015, 150,000 shares were issuable upon exercise of executive stock options which an exercise price of $20 per share. The average market price of the company's stock was $30 per share. Harvey Inc. also has two convertible securities. a. Convertible bonds, $2,000,000 face value, 7% interest, convertible into 40,000 shares of common stock. b. 5,000 shares of $100 par value convertible preferred stock with a dividend rate of 6%. Each $100 par value share is convertible into 10 shares each. During 2015, Harvey's net income was $2,400,000 and all preferred stock dividends were declared and paid. The company's tax rate is 40%. Instructions Compute the diluted earnings per share for 2015