Sage Corporation earned net income of $400,000 in 2017 and had 103,000 shares of common stock outstanding throughout the year. Also outstanding all year was $780,000 of 9% bonds, which are convertible into 16,000 shares of common. Sages tax rate is 40 percent. Compute Sages 2017 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.)

Diluted earnings per share: