Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2017. The preferred stock is convertible into 20,000 shares of common stock. During 2017, Jostens paid dividends of $1.20 per share on its common stock and $4.00 per share on its preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for the year ended December 31, 2017 was $800,000. Assume the income tax rate was 30%. Diluted earnings per share for 2017 (rounded to the nearest penny) are:

Select one:

a.$3.60

b.$3.35

c.$2.94

d.$3.28

e.$3.22