Palo Alto Company earned net income of $43,800 during 2016. At the beginning of 2016, it had 10,000 shares of common stock outstanding; an additional 4,000 shares were issued on July 2. During 2016, 600 shares of 8%, $100 par, convertible preferred stock were outstanding the entire year. Dividends on this preferred stock were paid in 2016. Each share is convertible into 5 shares of common stock. The corporate income tax rate is 30%.

Compute the 2016 diluted earnings per share. If required, round your answer to two decimal places.