Cash versus stock dividendMilwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.03 per share.

Preferred stock	$ 91,000
Common stock (100,000 shares at $0.93 par)	93,000
Paid-in capital in excess of par	218,000
Retained earnings	320,000
Total stockholders' equity	$722,000

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 $__. (Round to the nearest dollar.)