Cash versus stock dividend

Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.79 per share. Preferred stock $ 96,000 Common stock (200,000 shares at $0.99 par) 198,000 Paid-in capital in excess of par 211,000 Retained earnings 350,000 Total stockholders' equity $855,000 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 15% 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 $nothing. (Round to the nearest dollar.)