Bay Inc. reported net income of $1,500,000. Bay Inc. had 136,000 common shares outstanding at the beginning of the year. The company repurchased 80,000 treasury shares on July 1. Bay also issued 42,000 shares of $60 par/share, 3% convertible preferred shares on October 1 of the current year. Bay Inc. did not declare dividends on these preferred shares. Each preferred share is convertible into 10 common shares . What is Bays diluted EPS? (Round your answer to the nearest cent.)