Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $2.68 per share. Preferred stock Common stock (200,000 shares at $0.93 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 94,000 186,000 196,000 400,000 $876,000 a. Show the effects on the firm of a cash dividend of $0.05 per share. b. Show the effects on the firm of a 5% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends