Cash versus stock dividend - Milwaukee Tool has the following stockholder's equity account. The firm's common stock currently sells for $3.82 per share.

Preferred stock	$91,000
Common stock (200,000 shares at $1.09 par)	218,000
Paid in capital in excess of par	204,000
Retained earnings	370,000
Total stockholder's equity	883,000

a. show the effects on the firm of a cash dividend of $0.01 per share.

b. show the effects on the firm of a 15% stock dividend.

c. show the effects in parts (a) and (b). what are the significant differences between the two methods of paying dividends?