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 $ 97,000 Common stock (100,000 shares at $1.07 par) 107,000 194,000 360,000 $758,000 Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on the firm of a cash dividend of $0.01 per share. b. Show the effects on the firm of a 15% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends?