ML Inc. has the following: - Net income of $3,000,000. - 20,000 shares of nonconvertible preferred stock with a dividend of $20 per share. - 800,000 shares of common stock outstanding for the entire year. - 15,000 stock options outstanding since the beginning of the year with an exercise price of $13/ share. - Each option can be exercised for 10 shares of common stock. If the average common stock price for the year is $22, reported diluted EPS is closest to: $3.02 51.08 $258