Jack-N-Jill reported $657,750 as income from operations and 200,000 shares as its weighted average common shares outstanding for the year. Jack-N-Jill also had outstanding 27,000 6% preferred shares of $100 par value which were non-cumulative and nonconvertible. The company had not declared any dividends for either the current year or the previous year. In prior years, it had issued 1,125 8% , long-term convertible bonds at par value of $1,000 each which are still outstanding. Each bond can be converted into 40 common shares. No amount was credited towards contributed surplus-conversion. The tax rate was 40%. Jack-N-Jill had no other potentially dilutive securities and no conversions occurred during the year. The diluted EPS for the current year would be

Select one:

a.

$3.29

b.

$3.03

c.

$4.75

d.

$3.83

e.

none of the above.