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. What is the total amount of dividends that will be paid to the ordinary shareholders?

A) $32 000
B) $4 500
C) $400
D) $40 000