Pharoah Corporation had net income for the year of $716000 and weighted average common shares outstanding during the period of 245000 shares. The company also has a convertible bond issue outstanding. The bonds were issued four years ago at par of $2910000. carry a 8% interest rate, and are convertible into 49900 shares of common stock. The company has a 15% tax rate. Diluted earnings per share is $1.76. $3.10. $2.94. $3.22