Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.00 per share. Preferred stock Common stock (400,000 shares at $1.00 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 100,000 400,000 200,000 320,000 $1,020,000 a. Show the effects on the firm of a cash dividend of $0.10 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