Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $2.87 per share.

Preferred stock	$ 97,000
Common stock (300,000 shares at $1.07 par)	321,000
Paid-in capital in excess of par	204,000
Retained earnings	380,000
Total stockholders' equity	$1,002,000

a. Show the effects on the firm of a cash dividend of $0.15 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 $0.15 cash dividend is (Round to the nearest dollar.)

PLEASE LABEL WHICH ANSWER GOES TO WHICH QUESTION!!

(Round to the nearest dollar.)