Hemingway Corporation had 120,000 shares of common stock and 12,000 shares of 6%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $440,000 and dividends were paid to both common and preferred shareholders. Hemingway's effective tax rate is 25%.

Each share of preferred stock is convertible into five shares of common stock. What is Hemingway's diluted EPS (rounded)?

		$3.80.
		$2.44.
		$3.33.
		$4.27.