Wagner Co$.$ reported net income of $$500,000$ and preferred stock dividend of $$5,300$ in $2017$; and had $200,000$ shares of common stock outstanding throughout the year. Also outstanding all year were $45,000$ options to purchase common stock at $$10$ per share. The average market price of the stock during the year was $$15.$ Compute diluted earnings per share, rounded to the nearest penny. Explain why answer is $2\mathrm{.}30$