Question: Conversion of Stock Warrants: Warren Buffett and Goldman Sachs (Easy) In September 2008, in the midst of the credit crisis on Wall Street, Goldman Sachs invited Warren Buffett, the legendary fundamental investor, to contribute much-needed equity capital to the firm. Buffett seemingly got a very good deal. For a $5 billion cash infusion, he received perpetual preferred equity shares carrying a 10 percent dividend (redeemable by Goldman Sachs) plus warrants to buy 43 .5 million common shares at $115 per share (for a total of another $5 billion). The $115 conversion price was set at the current share price, a three-year low for Goldman. In June 2011 , Goldmans shares traded at $136 each. If Buffet exercised the warrants at that price, what is the loss to Goldmans shareholders?