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

Question:

Nottebart AG has outstanding 10,000 shares of €100 6% preference shares and 60,000 shares of €10 ordinary shares. The preference shares were issued in January 2019, and no dividends were declared in 2019 or 2020. In 2021, Nottebart declares a cash of €300,000. How will the be shared by ordinary and preference shareholders if the preference is
(a) Non-cumulative
(b) Cumulative?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...