Home Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share. $ 98,000 372,000 181,000 390,000 Preferred...

Extracted text: Home Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share. $ 98,000 372,000 181,000 390,000 Preferred stock se Options Common stock (400,000 shares at $0.93 par) Paid-in capital in excess of par Retained earnings ar Total stockholders' equity $1,041,000 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. 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 $0.10 cash dividend is $ (Round to the nearest dollar.) (Round to the nearest dollar.) The balance in common stock after the $0.10 cash dividend is $ (Round to the nearest dollar.) The balance in paid-in capital after the $0.10 cash dividend is $ The balance in retained earnings after the $0.10 cash dividend is $1. (Round to the nearest dollar.) Enter your answer in each of the answer boxes. O Type here to search


Extracted text: e Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share. $ 98,000 372,000 ptions Preferred stock Common stock (400,000 shares at $0.93 par) Paid-in capital in excess of par Retained earnings 181,000 390,000 Total stockholders' equity $1,041,000 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. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? The balance in total stockholders' equity after the $0.10 cash dividend is $ . (Round to the nearest dollar.) b. The balance in preferred stock after the 20% stock dividend is $ (Round to the nearest dollar.) The balance in common stock after the 20% stock dividend is $ (Round to the nearest dollar.) The balance in paid-in capital after the 20% stock dividend is $ (Round to the nearest dollar.) Enter your answer in each of the answer boxes. Type here to search