On January 2, 2021, Waterway Industries issued at par $2050000 of 6% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Waterway had 209000 shares of common stock outstanding during 2021. Waterways 2021 net income was $910000 and the income tax rate was 30%. Waterways diluted earnings per share for 2021 would be (rounded to the nearest penny):

a. $4.78.

b. $4.34

c. $4.35.

d. $4.48.