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Business, 26.03.2020 21:43 imsmart916

Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.83 per share. Preferred stock $ 97 comma 000 Common stock (200 comma 000 shares at $0.97 par) 194 comma 000 Paid-in capital in excess of par 196 comma 000 Retained earnings Modifying 380 comma 000 with underline Total stockholders' equity Modifying $ 867 comma 000 with double underline a. Show the effects on the firm of a cash dividend of $0.10 per share. b. Show the effects on the firm of a 15% stock dividend. c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends?

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Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's...

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