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Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share. Preferred stock Common stock (200,000 shares at $0.95 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 98,000 190,000 219,000 360.000 $867,000 a. Show the effects on the firm of a cash dividend of $0.01 per share. b. Show the effects on the firm of a 5% 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 $0.01 cash dividend is $(Round to the nearest dollar.) The balance in common stock after the $0.01 cash dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the $0.01 cash dividend is $. (Round to the nearest dollar.) The balance in retained earnings after the $0.01 cash dividend is $. (Round to the nearest dollar.) The balance in total stockholders' equity after the $0.01 cash dividend is $. (Round to the nearest dollar.) b. The balance in preferred stock after the 5% stock dividend is $. (Round to the nearest dollar.) The balance in common stock after the 5% stock dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the 5% stock dividend is $. (Round to the nearest dollar.) The balance in retained earnings after the 5% stock dividend is $. (Round to the nearest dollar.) The total stockholder's equity after the 5% stock dividend is $. (Round to the nearest dollar.) c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends? (Select from the drop-down menus.) V do not affect stockholders' equity; they only redistribute retained earnings into common stock and additional paid-in capital accounts. cause a decrease in retained earnings and, hence, in overall stockholders' equity