E8.10. Loss on the Conversion of Preferred Stock: Microsoft Corporation (Easy) 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 Decem- ber 1999, with each preferred share receiving 1.1273 common shares. At the time of con- version, Microsoft's common shares traded at $88 each. What was the loss to shareholders from the conversion?