a. The balance in preferred stock after the $0.10 cash dividend is $. (Round to the nearest dollar.) The balance in common stock after the $0.10 cash dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the $0.10 cash dividend is $ (Round to the nearest dollar.)
a. The balance in preferred stock after the $0.10 cash dividend is $. (Round to the nearest dollar.) The balance in common stock after the $0.10 cash dividend is $. (Round to the nearest dollar.) The balance in paid-in capital after the $0.10 cash dividend is $ (Round to the nearest dollar.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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.
$ 98,000
372,000
181,000
390,000
Preferred stock
se Options
Common stock (400,000 shares at $0.93 par)
Paid-in capital in excess of par
Retained earnings
ar
Total stockholders' equity
$1,041,000
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 20% 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 $0.10 cash dividend is $
(Round to the nearest dollar.)
(Round to the nearest dollar.)
The balance in common stock after the $0.10 cash dividend is $
(Round to the nearest dollar.)
The balance in paid-in capital after the $0.10 cash dividend is $
The balance in retained earnings after the $0.10 cash dividend is $1. (Round to the nearest dollar.)
Enter your answer in each of the answer boxes.
O Type here to search
Transcribed Image Text:e
Cash versus stock dividend Milwaukee Tool has the following stockholders' equity account. The firm's common stock currently sells for $3.85 per share.
$ 98,000
372,000
ptions
Preferred stock
Common stock (400,000 shares at $0.93 par)
Paid-in capital in excess of par
Retained earnings
181,000
390,000
Total stockholders' equity
$1,041,000
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 20% stock dividend.
c. Compare the effects in parts a and b. What are the significant differences between the two methods of paying dividends?
The balance in total stockholders' equity after the $0.10 cash dividend is $ . (Round to the nearest dollar.)
b. The balance in preferred stock after the 20% stock dividend is $
(Round to the nearest dollar.)
The balance in common stock after the 20% stock dividend is $
(Round to the nearest dollar.)
The balance in paid-in capital after the 20% stock dividend is $
(Round to the nearest dollar.)
Enter your answer in each of the answer boxes.
Type here to search
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