What is the diluted earnings per share (EPS) for BDS Company, considering a net income of $700,000 and a 40 percent income tax rate? The company has 15,000 shares of $100 par value 7% preferred stock outstanding, and each preferred share is convertible to 14 shares of common stock. Additionally, the company paid dividends of $120,000 during the year. The par value of the common stock outstanding throughout the year is $4,500,000, with each share having a par value of $10. Round the diluted EPS to the nearest cent.