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The firm's common stock currently sells for $3.68 per share. Preferred stock Common stock (400,000 shares at $1.05 par) Paid-in capital in excess of par
The firm's common stock currently sells for $3.68 per share. Preferred stock Common stock (400,000 shares at $1.05 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on the firm of a cash dividend of $0.10 per share. b. Show the effects on the firm of a 20% stock dividend. $ 91,000 420,000 217,000 370,000 $1,098,000 c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends
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