Riga Ltd. has outstanding 100,000 no par common shares and 20,000 no par, $0.40, preferred shares issued at $5 each. The preferred shares are cumulative and non-participating. Dividends have been paid every year except the past two years and the current year. Assuming that $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive?

$21,000

$0

$8,000

$16,000