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Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.13 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 $4.13 per share. Preferred stock Common stock (200,000 shares at $0.97 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 92,000 194,000 192,000 330,000 $808,000 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 10% 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 $ 92000 . (Round to the nearest dollar.) The balance in common stock after the $0.10 cash dividend is $ (Round to the nearest dollar.)
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