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    Loss to shareholders from the conversion of preferred shares

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    In 1996, Microsoft issued 12.5 million convertible preferred shares carrying a dividend 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?

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    https://brainmass.com/business/accounting-for-corporations/loss-shareholders-conversion-preferred-shares-279633

    Solution Summary

    The expert examines the loss to shareholders from the conversion of preferred shares for Microsoft.

    $2.19