Exercise 0-10

On January 1, 2020, a company issued $483,000 of 7% convertible preferred stock. Each $100 preferred share is convertible into 15 shares of common stock. The companys net income in the year was $736,000. The company had 145,000 shares of common stock outstanding throughout 2020.

What is the diluted earnings per share for 2020? (Round your answer to the nearest cent, or hundredth place, if necessary.