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LG(5) P14-13 CASH VERSUS STOCK DIVIDEND Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4 per share. 1.
LG(5) P14-13 CASH VERSUS STOCK DIVIDEND Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4 per share. 1. Show the effects on the firm of a cash dividend of $0.01,$0.05,$0.10, and $0.20 per share. 2. Show the effects on the firm of a 1%,5%,10%, and 20% stock dividend. 3. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends
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