=+P14–10 Cash versus stock dividend Luxottica, an Italian eyewear company, has the following stockholders’ equity account. The firm’s common stock currently sells for €40 per share.

Preferred stock €1,000,000 Common stock (100,000 shares at €20 par) €2,000,000 Paid-in capital in excess of par €5,000,000 Retained earnings €850,000 Total stockholders’ equity €8,850,000