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 methodsof paying? dividends?
a.??The balance in preferred stock after the $0.20 cash dividendis $______
?(Round to the nearest? dollar.)
Preferred stock | ?$?? 91 comma 00091,000 |
| Commonstock ?(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 withunderline 390,000 |
Total? stockholders' equity | Modifying $ 1 comma 058 comma 000 with doubleunderline$1,058,000 |
