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:

Dermis

The dermis is the thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, hair follicles, and other structures.

Integumentary

Pertaining to the body's skin, hair, nails, and exocrine glands, which provide protection and sensation.

Integumentary

Pertaining to the body system that includes skin, hair, nails, and associated glands.

Epidermis

The skin's outermost layer, acting as a shield against damage from the environment.