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:

• 100 million shares ofcommon stock outstanding.
• 2 million, 10% cumulative convertible preferred stocks outstanding. These 2 million convertible preferred shares had a par value of $100 per share, were issued at par, and each is convertible to5common 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 25 shares of CAT's common stock. The bonds pay 5% interestannuallyat the end of each year and mature at the end of 2016. No bonds were converted during 2013.
• 20 million stock options withan exercise price of $25.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 10million options.
• April 1, 2013:CAT bought back 6 million shares of its common stock.
• June 1, 2013:CAT reissued the 6 million treasury shares that wereacquired on March 1.
• November 1, 2013:CAT declared and distributed a 50% stock dividend on common stocks.
• December 1, 2013:CAT issued 6 million new shares of common stock.
• December 31, 2013:CAT declared and paid a cash dividend of 60 cents per share to all holders of outstanding common stocks as of 12/31/2013, and a 10% cash dividend to all holders of preferred stocks as of 12/31/2013.

CAT reported net income of $400 million for the year ended December 31, 2013, and its tax rate was 40%.

Required:

Calculate CAT'sBasic and Diluted EPSfor the year ended December 31, 2013.Must show your work, includingorder of conversion, to receive credit.