From Its Inception to the Year of 2014, Quicksales Company

Multiple Choice

From its inception to 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 ordinary and preference. There are 1 500 shares of cumulative preference shares outstanding, paying an annual dividend of $7 each. What is the total amount of dividends which should be paid to the preference shareholders in December 2016?

A) $21 000
B) $10 500
C) $210
D) $22 000