securties converted into common stock and increasing the number of shares outstanding- Example: Newport Corporation reported net income of $126,000 for year ended December 31, 2008. During 2008 Newport declared preferred dividends of $12,000. On January 1, 2008 Newport had 1,000,000 shares of common stock outstanding. On June 1, Newport issued additional 500,000 shares of common stock. Calculate basic EPS