At December 31, 2017, Waterway Industries had 1,240,000 shares of common stock outstanding. In addition, Waterway had 447,000 shares of preferred stock which were convertible into 752,000 shares of common stock. During 2018, Waterway paid $1,110,000 cash dividends on the common stock and $804,000 cash dividends on the preferred stock. Net income for 2018 was $6,790,000 and the income tax rate was 40%. The diluted earnings per share for 2018 is (rounded to the nearest penny)