Compute diluted earnings per share for the following problem. (Please show work)

Stanley Corporation had 500,000 shares of $1 par value common stock outstanding at January 1, 2012. On July 1,2012, the company issued 100,000 additional shares of common stock. In addition, at December 31, 2012,90,000 shares were issuable upon exercise of executive stock options which require a $50 cash payment upon exercise. The average market price during 2012 was $50. Stanley Corporation also has two convertible securities. There are 1,000 convertible bonds with a face amount of $1,000, interest rate of 6% and convertible into 20 shares of common stock and 10,000 shares of 5%, $60 par value convertible preferred stock, convertible into 2 shares each. During 2012, Stanley Corporation's net income was $2,200,000 and all preferred stock dividends were declared and paid. The company's tax rate is 40%. Compute the diluted earnings per share for 2012. (Please show work)