= Homework: Week Four Question 6, BE20-13 (similar to) Part 1 of 2 HW Score: 4.76%, 1 of 21 points O Points: 0 of 1 Save Fermer Enterprises has asked you to determine whether its proposed issue of convertible debt will have dilutive effects on earnings per share. If the convertible bonds prove to be dilutive, the company might consider an alternate vehicle to finance the $15,000,000 construction cost of a new plant facility. Currently, Fermer's basic earnings per share is equal to $19.00 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 $15,000,000 par value, pays interest at a rate of 5%, and is convertible to 240,000 common shares. Fermer's tax rate is 35%. Will the convertible debt be dilutive? Provide a brief explanation and all computations needed to support your conclusion. 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.) = Incremental per share effect Additional shares on debt conversion Basic earnings per share Debt interest savings on debt conversion Par value of the convertible debt Tax rate