Boeing had $1,000,000 net income in 2018. On January 1, 2018, there were 200,000 shares of common stock outstanding. There are 30,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2018. The tax rate is 30%.

During 2018, there were 40,000 shares of preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend.

Boeing issued $2,000,000 of 8% convertible bonds at face value during 2017. Each $1,000 bond is convertible into 30 shares of common stock.

Required:

Prepare the Basic and Diluted Earnings per Share for Boeing for FY2018.

What does diluted mean in Diluted Earnings per Share?

What does anti-dilutive mean as it relates to Earnings per Share? What causes antidilution?