Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.09 per share. Preferred stock $ 92,000 327,000 Common stock (300,000 shares at $1.09 par) Paid-in capital in excess of par 196,000 Retained earnings 370,000 Total stockholders' equity $985,000 a. Show the effects on the firm of a cash dividend of $0.20 per share. b. Show the effects on the firm of a 10% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends