Earning Per Share. Given the following financial structure for Company S for all of 2016:

Common stock, $1 par value, 800,000 shares issued and outstanding all year.

Convertible preferred stock, 50,000 shares, $100 par value, 6% cumulative dividend, each share convertible into 5 shares of common stock.

Convertible bonds, $500,000 face value, 8% stated rate, each $1,000 bond is convertible into 20 shares of common stock.

Stock options, 100,000 options outstanding, each option convertible for one share of stock at an option price of $60 per share.

Additional information:

1. The convertible bonds were issued at par in 2015.

2. The average market price per share for the common stock was $80 for the year.

3. The income tax rate for Company S is 30 percent.

4. Net income for Company S for 2016 was $$2,600,000.

Calculate Basic EPS (carry calculations to 2 decimal places).