During the current year, East Corporation had two million shares of common stock outstanding, Two thousand convertible bonds - each with a $1,000 maturity value and promising 8% interest - were issued at face amount at the beginning of the year. East has a tax rate of 25%, and it reported income before tax of $2.4 million and net income of $1.8 million for the year. Each bond is convertible into 40 shares of common stock. What is diluted EPS rounded to the nearest penny? Remember to calculate the incremental EPS ratio for those convertible bonds before deciding to include them into the diluted EPS calculation.