Champaign Automation Technologies, Inc. (CAT) is a leading provider of industrial automation power, control and information solutions. On January 1, 2013, CAT had the following:
120 million shares of common stock outstanding.
3 million, 8% cumulative convertible preferred stocks outstanding. These 3 million convertible preferred shares had a par value of $100 per share, were issued at par, and each is convertible to 5 common shares. No conversion took place during 2013.
200,000 convertible bonds that were issued at face. Each bond had a face value of $1,000, and was convertible into 30 shares of CAT’s common stock. The bonds pay 6% interest annually at the end of each year and mature at the end of 2016. No bonds were converted during 2013.
30 million stock options with an exercise price of $20. During 2013, CAT’s average stock price was $50, with a closing price of $45 on December 31, 2013.
The following transactions took place during 2013:
February 1, 2013: Executives exercised 10 million options.
April 1, 2013: CAT bought back 8 million shares of its common stock.
June 1, 2013: CAT reissued the 8 million treasury shares that were acquired on March 1.
November 1, 2013: CAT declared and distributed a 50% stock dividend on common stocks.
December 1, 2013: CAT issued 8 million new shares of common stock.
December 31, 2013: CAT declared and paid a cash dividend of 70 cents per share to all holders of outstanding common stocks as of 12/31/2013, and 8% cash dividend to all holders of preferred stocks as of 12/31/2013.
CAT reported net income of $500 million for the year ended December 31, 2013, and its tax rate was 30%.
Calculate CAT's Basic and Diluted EPS for the year ended December 31, 2013. Must show your work, including order of conversion, to receive credit.