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Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.54 per share. Preferred stock Common
Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.54 per share. Preferred stock Common stock (100,000 shares at $1.04 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 94,000 104,000 201.000 380.000 $779.000 a. Show the effects on the firm of a cash dividend of $0.01 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 $0.01 cash dividend is $. (Round to the nearest dollar.)
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