Information concerning the capital structure of Pharoah Corporation is as follows:

	2025	2026
Common stock	146000 shares	146000 shares
Convertible preferred stock	15100 shares	15100 shares
6% convertible bonds	$2460000	$2460000

In 2025, Pharoah paid dividends of $0.90 per share on its common stock and $3.00 per share on its preferred stock. The preferred stock is convertible into 30800 shares of common stock. The 6% convertible bonds are convertible into 75800 shares of common stock. The net income for the year ended December 31, 2025, was $401880. Assume that Pharoah's income tax rate was 30%. What should Pharoah report for diluted earnings per share for the year ended December 31, 2025?

a) $1.81

b) $2.00

c) $2.28

d) $2.07