At December $31,2014,$ Channing Company had $2,000,000$ shares of common stock outstanding.

On January $1,2015,$ the company issued $500,000$ shares of preferred stock which were convertible into $1,000,000$ shares of common stock.

During $2015,$ the company declared and paid $$1,200,000$ cash dividends on the common stock. Also, $$400,000$ cash dividends were

declared and paid on the preferred stock. Net income for $2015$ was $$4,000,000.$

The income tax rate is $30\%.$ What should be diluted earnings per share for the year ended December $31,2015?($Round to the nearest

penny.$)$

$$1\mathrm{.}20$

$$1\mathrm{.}33$

$$2\mathrm{.}00$

$$1\mathrm{.}66$