EMD Company had 512,500 shares of common stock outstanding during 2009.Net income for 2009 was $ 2,415,000; the income tax rate was 30%. In addition, EMD had the following debt and equity securities on its books on December 31,2009:

28,000 shares of $100 par,10% cumulative preferred stock, par $100, sold at $ 110 per share in 2007.The preferred stock is convertible into 79,000 shares of common stock.

$2,000,000 face value of 9% bonds sold at par in 2008.

$3,000,000 face value of 7% convertible bonds at par in 2007.The bonds are convertible into 60,000 shares of common stock.

Options to purchase 10,000 shares of common stock were issued May 1,2009. Exercise price is $30 per share.

Common Stock per share prices:

At date of grant, $29

Average during 2009, $40.

Compute both Basic and Diluted Earnings per Share (EPS) for the year ended December 31,2009.

What is the objective of calculating diluted earnings per share? (Has a one sentence answer)

What is anti-dilution of EPS? (Has a one sentence answer!)