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 amount of dividend which will be paid for each share of ordinary shares?

A) $4.00
B) $1.00
C) $0.80
D) $400.00