Nottebart Corporation has outstanding 10,000 shares of 100 par value, 6% preference shares and 60,000 shares of

Question:

Nottebart Corporation has outstanding 10,000 shares of €100 par value, 6% preference shares and 60,000 shares of €10 par value ordinary shares. The preference shares were issued in January 2015, and no dividends were declared in 2015 or 2016. In 2017, Nottebart declares a cash dividend of €300,000. How will the dividend be shared by ordinary and preference shareholders if the preference is

(a) non-cumulative and

(b) cumulative?

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