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Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock currently sells for $3.11per...

Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock currently sells for $3.11per share:

a. Show the effects on the firm of a cash dividend of

​$0.200.20

per share.

b. Show the effects on the firm of a 55​% 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 $0.20 cash dividend is $______

​(Round to the nearest​ dollar.)

Preferred stock

 ​$  

91 comma 00091,000
Common stock

​(400 comma 000400,000

shares at

​$0.910.91

​par)

364 comma 000364,000

​Paid-in capital in excess of par

213 comma 000213,000

Retained earnings

Modifying 390 comma 000 with underline    390,000

Total​ stockholders' equity

Modifying $ 1 comma 058 comma 000 with double underline$1,058,000

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jeff jeffy answered 1 year ago
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