1. On December 31, 2022, Haydn Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative (non-convertible) preferred stock (par $10). On February 28, 2023, Haydn issued an additional 36,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2023. On September 1, 2023, 9,000 shares were retired.

Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2020 (at par) and convertible into 50,000 common shares (adjusted for the stock dividend). Net income was $900,000. The tax rate for the year was 40%.

Compute basic and diluted EPS (rounded to 2 decimal places) for the year ended December 31, 2023.