Plain Taste Ltd has a profit after tax of $5280000 for the period ended 30 June 2021.

Plain Taste Ltd also has $1000000 of 7% cumulative preference shares. These preference shares can not convert into ordinary shares and their dividends are not tax deductible.

As at 1 July 2020 there were 2000000 fully paid ordinary shares issued.

Plain Taste Ltd also has $1500000 in convertible debentures issued for the full year. It pays interest of 8% per annum and could be converted into 500000 ordinary shares at the option of the debenture holders.

Throughout the year, there are 180000 share options with an exercise price of $1.4. The average market price for ordinary shares during the year was $2.5. The tax rate is 31%.

What is the diluted EPS as of 30 June 2021?

a. 2.067

b. 2.605

c. 2.052

d. 1.975