1. During 2022, Broncos Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative (non-convertible) preferred stock outstanding. The preferred stock has a par value of $100 per share. Broncos did not declare or pay any dividends during 2022. Broncos' net income for the year ended December 31, 2022, was $2.5 million. The income tax rate is 40%. Broncos granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The market price of the common stock averaged $30 per share during 2022. Compute Broncos' basic and diluted earnings per share for 2022, rounded to the nearest cent