P14-10 (similar to) Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $4.33 per share. Preferred stock Common stock (100,000 shares at $1.03 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 97,000 103,000 211,000 350,000 $761,000 a. Show the effects on the firm of a cash dividend of $0.01 per share. b. Show the effects on the firm of a 1% 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 $0.01 cash dividend is $ 97,000. (Round to the nearest dollar.) The balance in common stock after the $0.01 cash dividend is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. 9 parts remaining Clear All Check