Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.41 per share. Preferred stock $ 100,000 Common stock (100,000 shares at $0.92 par) 92,000 Paid-in capital in excess of par 215,000 Retained earnings 370,000 Total stockholders' equity $777,000 a. Show the effects on the firm of a cash dividend of $0.15 per share. b. Show the effects on the firm of a 1% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? a. The balance in preferred stock after the $0.15 cash dividend is $ (Round to the nearest dollar.) The balance in common stock after the $0.15 cash dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the $0.15 cash dividend is $. (Round to the nearest dollar.) The balance in retained earnings after the $0.15 cash dividend is (Round to the nearest dollar.) The balance in total stockholders' equity after the $0.15 cash dividend is $. (Round to the nearest dollar.) b. The balance in preferred stock after the 1% stock dividend is $ (Round to the nearest dollar.) The balance in common stock after the 1% stock dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the 1% stock dividend is $ (Round to the nearest dollar.) The balance in retained earnings after the 1% stock dividend is $ (Round to the nearest dollar.) The total stockholder's equity after the 1% stock dividend is $. (Round to the nearest dollar.) C. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? (Select from the drop-down menus.) V do not affect stockholders' equity; they only redistribute retained earnings into common stock and additional paid-in capital accounts. overall stockholders' equity. cause a decrease in retained earnings and, hence, in