Yoomi Co. Had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and 1,000,000 of 10% convertible bonds outstanding throughout 2017. The preferred stock is convertible into 40,000 shares of common stock. During 2017 Yoomi paid dividends of $.90 per share on the common stock and $3.00 per share on the preferred stock. Each $1000 bond is convertible into 25 shares of common stock. The net income for 2017 was $600,000 and the income tax rate was 30%. Diluted earnings per share for 2017 is:

1. 2.50
2. 2.53
3. 2.64
4. 2.70