The XYZ Corporation reports net income in the current year of $200,000. XYZ had 2,000 convertible cumulative preferred shares outstanding for the whole year and the total amount of annual cash dividends to the preferred shares is $10,000. Each convertible preferred share can be converted into ten common shares. There are 200,000 shares of common stock outstanding throughout the year and $40,000 cash dividends were declared and paid to common shareholders in the current year. The company has an effective tax income rate of 20 percent. What was XYZ Corporations diluted earnings per share (rounded)?

A. $0.83

b. $0.91

c. $0.86

d. $0.89