At December 31, 2014, Sager Co. had 1,200,000 shares of common stock outstanding. In

addition, Sager had 450,000 shares of preferred stock which were convertible into

750,000 shares of common stock. During 2015, Sager paid $900,000 cash dividends on

the common stock and $600,000 cash dividends on the preferred stock. Net income for

2015 was $5,100,000 and the income tax rate was 40%. The diluted earnings per share

for 2015 is (rounded to the nearest penny)