Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.87 per share Preferred stock Common stock (400,000 shares at $1.03 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity S 93.000 412.000 195.000 380.000 $1,080.000 a. Show the effects on the firm of a cash dividend of $0.20 per share. b. Show the effects on the firm of a 5% 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 $0.20 cash dividend is $ (Round to the nearest dollar.) The balance in common stock after the $0.20 cash dividend is. (Round to the nearest dollar.) The balance in paid-in capital after the 50.20 cash dividend is $. Round to the nearest dollar.) The balance in retained earnings after the $0.20 cash dividend is $. (Round to the nearest dollar.) The balance in total stockholders' equity after the $0.20 cash dividend is $. (Round to the nearest dollar.) b. The balance in preferred stock after the 5% stock dividend is $ (Round to the nearest dollar.) The balance in common stock after the 5% stock dividend is $ (Round to the nearest dollar.) The balance in paid-in capital after the 5% stock dividend is $ (Round to the nearest dollar.) The balance in retained earnings after the 5% stock dividend is $ (Round to the nearest dollar.) The total stockholder's equity after the 5% 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.) V 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