Use the Following Information for Questions 70-72

question 150

Multiple Choice

Use the following information for questions 70-72.
Riga Ltd. has outstanding 100,000 no par common shares and 20,000 no par, $ 0.40, preferred shares issued at $ 5 each. The preferred shares are cumulative and non-participating. Dividends have been paid every year except the past two years and the current year.
-Assuming that $ 21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive?

• A) $ 0
• B) $ 8,000
• C) $ 16,000
• D) $ 21,000

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Definitions:

Hypothalamic-Pituitary-Adrenal Axis

A major part of the neuroendocrine system that controls reactions to stress and regulates body processes, including digestion, the immune system, mood and emotions, sexuality, and energy storage and expenditure.

General Adaptation Syndrome

A model outlining the body's short-term and long-term reactions to stress, consisting of the stages alarm, resistance, and exhaustion.

Digestion

The process by which food is broken down in the gut into substances that can be absorbed and assimilated into the body.

Immune-System Responses

The reactions of the immune system to foreign substances, infections, or injuries to protect the body.