Metromat has the following equity accounts on its balance sheet:

Common stock ($2 par, 2.4 million shares)	$ 4,800,000
Paid in excess	33,600,000
Retained earnings	134,400,000
Total common stockholders' equity	$172,800,000

The current market price of Metromat's shares is $16. If the firm declares a 15% stock dividend and a $.15 per share cash dividend, what will be the impact on the paid in excess account? Assume a marginal tax rate of 40%.

	a.	Does not change
	b.	Increases $5.76 million
	c.	Decreases $2.56 million
	d.	Increases $5.04 million