At December 31, 2016, Hansen Corporation had 52,000 shares of common stock and 5,000shares of 11%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2016. Net income was reported as $170,000. What is basic EPS? (Round your answer to 2 decimal places.)

$3.62. $3.27. $2.21. $2.98.