Occidental Produce Company Has 40 000 Shares of Ordinary Shares

Multiple Choice

Occidental Produce Company has 40 000 shares of ordinary shares outstanding and 2 000 shares of preference shares outstanding. The preference shares pay annual dividends of $4 each. On 15 October 2014, the company declares a total dividend payment of $40 000. How much dividend will be paid to the preference shareholders?

A) $2 000
B) $4 500
C) $8 000
D) $40 000