The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100 million shares outstanding Preferred stock ($10 par, 10%, convertible into 2 shares of common stock) – 50...

Extracted text: The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100 million shares outstanding Preferred stock ($10 par, 10%, convertible into 2 shares of common stock) – 50 million shares outstanding Options - 1 million options, each to purchase one common share at $50 per share Market price of stock - Beginning of year $73; End of year $81; Average for year = $78 %3D %3! %3D Preferred dividends paid =$50 million Net income for 2020 = $400 million %3D Diluted earnings per share for 2020 is O a. $2.03 O b. $3.49 c. $3.07 d. $2.99