From Its Inception Through the Year of 2014, Quicksales Company

question 68

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 that should be paid to the preferred shareholders in December, 2016?

• A)$33,500
• B)$22,000
• C)$10,500
• D)$21,000

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Definitions:

Defensive Weapons

Tools or devices designed and used to protect oneself or others from harm or danger, often through deterrence or physical force.

Distasteful Substances

Materials that are unpleasant to taste, often serving as a defense mechanism for plants and animals to avoid consumption by predators.

Camouflage

The adaptation of an organism's appearance to blend in with its environment, aiding in protection against predators.

Nerve Net

A simple nervous system found in some invertebrates, consisting of interconnected neurons with no central brain.