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Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $2.56 per share. Show the effects
Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $2.56 per share. Show the effects on the firm of a cash dividend of $0.05 per share. Show the effects on the firm of a 15% stock dividend. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? The balance in preferred stock after the $0.05 cash dividend is $. (Round to the nearest dollar.) The balance in common stock after the $0.05 cash dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the $0.05 cash dividend is $. (Round to the nearest dollar.) The balance in retained earnings after the $0.05 cash dividend is $. (Round to the nearest dollar.) The balance in total stockholders' equity after the $0.05 cash dividend is $. (Round to the nearest dollar.) The balance in preferred stock after the 15% stock dividend is $. (Round to the nearest dollar.)
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