HomeCash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share.$ 98,000372,000181,000390,000Preferred stockse OptionsCommon stock (400,000 shares at $0.93 par)Paid-in capital in excess of parRetained earningsarTotal stockholders' equity$1,041,000a. 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 eCash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share.$ 98,000372,000ptionsPreferred stockCommon stock (400,000 shares at $0.93 par)Paid-in capital in excess of parRetained earnings181,000390,000Total stockholders' equity$1,041,000a. 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

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a. The balance in preferred stock after the $0.10 cash dividend is $. (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 $ (Round to the nearest dollar.)

a. The balance in preferred stock after the $0.10 cash dividend is $. (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 $ (Round to the nearest dollar.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...

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