On March $1,2012$ Garrison, Incorporated declared the annual cash dividend on its $1,500$ outstanding shares of $$5$ par value, $5\%$ noncumulative preferred stock. The dividend will be paid on May $1,2012,$ to the stockholders of record as of April $1,2012.$

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The issuance of a stock dividend will

not affect total equity.

increase retained earnings.

decrease total paid$-$in capital.

decrease net income.