Palo Alto Company earned net income of $43,800 during 2019. At the beginning of 2019, it had 10,000 shares of common stock outstanding; an additional 4,000 shares were issued on July 2. During 2019, 600 shares of 8%, $100 par, convertible preferred stock were outstanding the entire year.
Dividends on this preferred stock were paid in 2019. Each share is convertible into 5 shares of common stock. The corporate income tax rate is 30%.

Required:
Compute the 2019 diluted earnings per share.