Dividend Preferences Illustration: In 2015, Mason Company is to distribute 50,000 as cash dividends, its outstanding ordinary shares have a par value of 400,000, and its 6 percent preference shares have a par value of 100,000. 1. If the preference shares are noncumulative and nonparticipating: 6% of 100,000 The remainder to ordinary Totals Preference Ordinary Total