I would like to know how this is calculated please

Powder Enterprises has asked you to determine if its proposed issue of convertible debt will have dilutive effects on earnings per share. If the convertible bonds prove to be dilutive, the company may consider an alternate vehicle to finance the $18,000,000 construction cost of a new plant facility. Currently, Powder's basic earnings per share is equal to $13.00 per share after factoring in the after-tax interest expense on the proposed bond issue. The convertible debt will be issued on April 1 at $18,000,000 par value, pays interest at a rate of 7%, and is convertible nto 290,000 common shares. Powder's tax rate is 40%. Will the convertible debt be dilutive? Provide a brief explanation and all computations needed to support your condlusion Begin by determining the incremental per share effect Select the formula labels, enter the amount and calculate the incremental per share effect. (Round your answer to the nearest cent, X.XX.) Additional shares on debf conversion Incremental per share e Debt interest savings on debt conversion 567,000 217,500 2.61 The converible debt will bedilutive, because the incremental per share effect is less than the basic eanings per shane