Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if the raise the $1,000,000 by:

issuing 10,000 share of 10% $100 par value convertible preferred stock, where sharescan be coverted into 10 shares of Peyton common stock?

How do you calculate EPS?