Philpott Co. had 1,200,000 common shares outstanding on January 1 and December 31, 2002. In connection with the acquisition of a subsidiary company in June 2001, Philpott is required to issue 50,000 additional common shares on July 1, 2003, to the former owners of the subsidiary. Philpott paid $300,000 in preferred shares dividends in 2002, and reported net income of $5,100,000 for the year. Philpott's diluted earnings per share for 2002 should be: