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:

R&D Expenditures

Funds allocated for conducting research and development with the aim of innovation and improving products or services.

Sales

The exchange of a commodity for money; the action of selling something.

Inverted-U Theory

A hypothesis suggesting that there is an optimal level of some variable (such as stress or arousal) for performance, with both too little and too much leading to lower performance.

R&D Expenditures

Funds allocated by governments, institutions, or companies towards research and development activities.