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lll elrect ot a stock dividend on the stockholders' equity? Cash versus stock dividend Milwaukee Tool has the following stockholders' equity P14-10 account. The firm's
lll elrect ot a stock dividend on the stockholders' equity? Cash versus stock dividend Milwaukee Tool has the following stockholders' equity P14-10 account. The firm's common stock currently sellsfor S4 per share. Preferred stock Common stock (400,000 shares at $1 par) Paid-in capital in excess of par Retained earnings $ 100,000 400,000 200,000 320,000 $1,020,000 Total stockholders' equity Show the effects on the firm of a cash dividend of $0.01, $0.05, $0.10, and $0.20 per share. a. b. Show the effects on the firm of a 1%, 5%, 10%, and 20% stock dividend. c. Compare the effects in parts a and b. What are the significant differences be- tween the two methods of paying dividends
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