Vaughn Manufacturing had 197000 shares of common stock, 20900 shares of convertible preferred stock, and $1490000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 39800 shares of common stock. During 2021 , Vaughn paid dividends of $0.90 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $597000 and the income tax rate was 40%. Diluted earnings per share for 2021 is (rounded to the nearest penny) $2.13. $2.52. $2.09. $2.25