An analyst gathers the following information about a company's fiscal year ended 31 December:

• Net income: €2,500,000
• Weighted average common shares outstanding during the year: 2,000,000
• Convertible preferred shares outstanding: 1,000,000
• Dividend per convertible preferred share: €1 One convertible preferred share is convertible into two common shares. If the tax rate is 40% and there are no other potentially dilutive securities outstanding, the reported diluted earnings per share (EPS) is closest to: