Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.97 per share. Preferred stock Common stock (400,000 shares at $1.04 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 98,000 416,000 212,000 360,000 $1,086,000 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 s (Round to the nearest dollar) The balance in paid-in capital after the $0.10 cash dividend is 5 (Round to the nearest dollar.) The balance in retained earnings after the S0.10 cash dividend is s (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 s (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 5 (Round to the nearest dollar.) The balance in paid-in capital after the 1% stock dividend is S. (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.) 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. Enter your answer in each of the answer boxes