At December 31, 2021, Hansen Corporation had 53,000 shares of common stock and 5,800 shares of 8%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2021. Net income was reported as $200,000. What is basic EPS? (Round your answer to 2 decimal places.)

$2.90.

$3.77.

$3.40.

$4.24.