QUESTION 2 HY Co had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,500,000 of 5% convertible bonds outstanding during 2018. The preferred stock is convertible into 40,000 shares of common stock. During 2015, HY paid dividends of $.90 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2018 was $800,000 and the income tax rate was 40% Diluted earnings per share for 2018 is (rounded to the nearest penny) O a. $2.38 o b. $2.52 OC. $2.89 O d. $2.96