Question 15 (2 points) At December 31, year 3, Lowen Co. had 800,000 shares of common stock outstanding. In addition, Lowen had 300,000 shares of preferred stock which were convertible into 400,000 shares of common stock. During year 4, Lowen paid $600,000 cash dividends on the common stock and $300,000 cash dividends on the preferred stock. Net income for year 4 was $3,000,000 and the income tax rate was 40%. Calculate the diluted earnings per share for year 4 (rounded to the nearest penny). 1