From Its Inception to the Year of 2014, Quicksales Company

question 115

Multiple Choice

From its inception to the year of 2014, Quicksales Company was profitable and made strong dividend payments each year. In the year 2015, Quicksales had major losses and paid no dividends. In 2016, the company started making large profits again, and they were able to pay dividends to all shareholders-both ordinary and preference. There are 1 500 shares of cumulative preference shares outstanding, paying an annual dividend of $7 each. What is the total amount of dividends which should be paid to the preference shareholders in December 2016?

• A)$21 000
• B)$10 500
• C)$210
• D)$22 000

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas.

Monotonous

Lacking in variety and interest; tediously unvarying.

Attributonial Bias

A cognitive bias that affects the way we determine who or what is responsible for an event or action, often leading to error in judgment.

Cognitive Dissonance

A psychological discomfort experienced when holding contradictory beliefs or values, or when behavior and beliefs do not align, often leading to a change in beliefs or behaviors to reduce the dissonance.