DAC is a leading provider of digital-to-analog converters. On January 1, 2021, DAC had the following: - 300 million shares of common stock outstanding. - 20 million, 10%,$50 par convertible preferred stocks outstanding, convertible into 50 million common shares. No conversion took place during 2021. - $700 million, 6%, convertible bonds that were issued at face, convertible into 80 million common stocks. No bonds were converted during 2021. - 100 million stock options with an exercise price of $60. During 2021 , DAC's average stock price was $75, with a closing price of $85 on December 31,2021 . The following transactions took place during 2021: - April 1, 2021: DAC issued 50 million shares of its common stock. - June 1, 2021: DAC bought back 40 million shares of its common stock. - August 1, 2021: DAC declared and distributed a 20\% stock dividend on common stocks. - December 1, 2021: DAC issued 30 million new shares of common stock. - December 31, 2021: DAC declared and paid a cash dividend of $100M to all holders of preferred stocks as of 12/31/2021. DAC reported net income of $1 billion for the year ended December 31,2021 , and its tax rate was 30%. Required: 1. Calculate Basic EPS. Show your work 2. Calculate the incremental effect of each potentially dilutive instrument. Show your work. 3. What is the order of conversion? (i.e. rank the convertible securities from most to least dilutive) 4. Calculate Diluted EPS. Must show your work including order of conversion and indiDACing whether each item is dilutive or anti-dilutive to receive credit