The stockholders' equity section of the Bates Corporation's balance sheet for 2009 June 30, follows: Stockholders' equity: Paid-in Capital: Common stock - $20 par value; authorized 200,000 shares; issued and outstanding 80,000 shares $1,600,000 Paid-in capital in excess of par value 960,000 Total paid-in capital $2,560,000 Retained earnings 1,520,000 Total stockholders' equity $4,080,000 On 2009 July 1, the corporation's directors declared a 10 per cent stock dividend distributable on August 2 to stockholders of record on July 16. On 2009 November 1, the directors voted a USD 2.40 per share annual cash dividend payable on December 2 to stockholders of record on November 16. For four years prior to 2009, the corporation had paid an annual cash dividend of USD 2.52. As of 2009 July 1, Bob Jones owned 8,000 shares of Bates Corporation's common stock, which he had purchased four years earlier. The market value of his stock was USD 48 per share on 2009 July 1, and USD 43.64 per share on 2009 July 16. a. What amount of cash dividends will Jones receive in 2009? How does this amount differ from the amount of cash dividends Jones received in the previous four years? b. Jones has asked you, his CPA, to explain why the price of the stock dropped from USD 48 to USD 43.64 on 2009 July 16. Write a memo to Jones explaining your answer. c. Do you think Jones is better off as a result of the stock dividend and the USD 2.40 cash dividend than he would have been if he had just received the USD 2.52 cash dividend? Write a memo to Jones explaining your answer.