P14-9 Stock dividend: Firm The stockholders' equity account for Paper Manufacturers is shown below. The firm's common stock has a current market price of $20 per share. Preferred stock $100,000 Common stock (120,000 shares at $4 par) $480,000 Paid-in capital in excess of par $1,920,000 Retained earnings $360,000 Total stockholders' equity $2,860,000 a. How will the stockholders' equity account changes if Paper Manufacturers pays a 5% stock dividend? b. How will the stockholders' equity account changes if Paper Manufactures pays (1) a 10% and (2) a 15% stock dividend? c. What are the effects of stock dividends on stockholders' equity