At December 31, 2016, Hansen Corporation had 48,000 shares of common stock and 4,700 shares of 11%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2016. Net income was reported as $180,000. What is basic EPS? (Round your answer to 2 decimal places.)

$4.16.

$3.75.

$3.42.

$2.67.