Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $355 per share Preferred stock $ 95,000 Common stock (400,000 shares at 50.91 par) 364 000 Paid-in capital in excess of par 189,000 Retained earnings 320,000 Total stockholders' equity 5968,000 a. Show the effects on the firm of a cash dividend of 50.05 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 $0.05 cash dividend is $ (Round to the nearest dollar) The balance in common stock after the 50.05 cash dividend is S (Round to the nearest dollar) The balance in paid-in capital after the $0.05 cash dividend is S (Round to the nearest dollar.) The balance in retained earnings after the $0.05 cash dividend is S. (Round to the nearest dollar) The balance in total stockholders' equity after the $0 05 cash dividend is SL (Round to the nearest dollar) s 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 $(Round to the nearest dollar) The total stockholder's equity after the 1% stock dividend is 5 (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 cause a decrease in retained earnings and hence in overall stockholders' equity