Graham Inc. began Year $7$with $25,000$common shares outstanding and issued a $20\%$stock dividend on August $1.$The company issued $6,000$shares on December $1.$Graham also has $18,000$shares of $9\%,$$$20$par$,$ cumulative preferred stock outstanding on which no dividends have been paid during either Year $6$or Year $7.$Net income for Year $7$was $$175,600.$

Compute Graham Inc.$\text{'}$s basic earnings per share for Year $7.$round $2$decimal places if needed.

$4\mathrm{.}02$ and $4\mathrm{.}88$ are incorrect answers