Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.07 per share. Preferred stock Common stock (400,000 shares at $0.96 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 100,000 384,000 212,000 320,000 $1,016,000 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 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 $0.10 cash dividend is S - (Round to the nearest dollar.) The balance in common stock after the $0.10 cash dividend is $ . (Round to the nearest dollar.) The balance in paid-in capital after the $0.10 cash dividend is $ (Round to the nearest dollar.) The balance in retained earnings after the $0.10 cash dividend is $ . (Round to the nearest dollar.) The balance in total stockholders' equity after the $0.10 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 S . (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.) do not affect stockholders' equity, they only redistribute retained earnings into common stock and additional paid-in capital accounts. y cause a decrease in retained earnings and, hence, in overall stockholders' equity