Right answer is 2.58

On January 2, 2018, Perez Co. issued at par exist10,000 of 6% bonds convertible in total into 1,000 shares of Perez's common stock. No bonds were converted during 2018. Throughout 2018, Perez had 1, 100 shares of common stock outstanding and 500 shares of preferred stock outstanding. Perez's 2018 net income was exist5, 500, and its income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2018. Preferred dividends were exist1.200. Perez's diluted earnings per share for 2018 would be (rounded to the nearest penny)