In 1996, Microsoft issued 12.5 million convertible preferred shares carrying a dividend of 2.75 percent for $980

Question:

In 1996, Microsoft issued 12.5 million convertible preferred shares carrying a of 2.75 percent for $980 million. The shares were converted into common shares in December 1999, with each preferred share receiving 1.1273 common shares. At the time of conversion, Microsoft’s common shares traded at $88 each. What was the loss to shareholders from the conversion?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...