please I need explanation for this exercise

prediction? STOW at a rate of 8 percent per yo E16.9. Comprehensive Analysis and Valuation (Hard) This exercise comes in two parts. Part I involves an analysis of a set of financial statements and Part II involves forecasting and valuation based on those financial statements. Part I: Analysis The following is a comparative balance sheet for a firm (in millions of dollars): 2012 2011 2012 2011 $ 60 $ 50 Accounts payable Accrued liabilities $1,200 390 $1,040 450 Operating cash Short-term investments (at market) Accounts receivable Inventory Property and plant Long-term debt 1,840 1,970 550 940 910 2,840 $5,300 500 790 840 2.710 $4,890 Common equity 1,870 55,300 1.430 $4,890 The following is the statement of common shareholders' equity: Balance, end of fiscal year 2011 Share issues from exercised employee stock options Repurchase of 24 million shares Cash dividend Tax benefit from exercise of employee stock options Unrealized gain on investments Net income Balance, end of fiscal year 2012 $1.430 810 (720) (180) 12 50 468 $1,870 The firm's income tax rate is 35 percent. The firm reported $15 million in interest income and $98 million in interest expense for 2012. Sales revenue was $3,726 million a. Calculate the loss to shareholders from the exercise of employee stock options. b. The shares repurchased were in settlement of a forward purchase agreement. The ma ket price of the shares at the time of the repurchase was $25 each. What was the effect of this transaction on the income for the shareholders