From Its Inception Through the Year of 2014, Quicksales Company

question 136

Multiple Choice

From its inception through 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 common and preferred. There are 1,500 shares of cumulative, 7% preferred stock outstanding. The preferred stock has a par value of $100. What is the total amount of dividends which should be paid to the preferred shareholders in December, 2016?

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