Luxury Mansions Corporation reported net earnings of $3 million for the year ended June 30, 2013. The company had 800,000 common shares and 10,000 shares convertible preferred, payable at $10 per share, at the beginning of the year. Each preferred share is convertible into two common shares. There were no other potentially dilutive securities, and the tax rate was 25%. The company's diluted EPS, using the if-converted method under U.S. GAAP and IFRS, is closest to: O $3.75. O $3.66. O $3.63