Answer:
In marketing, brand management begins with an analysis on how a brand is currently perceived in the market, proceeds to planning how the brand should be perceived if it is to achieve its objectives and continues with ensuring that the brand is perceived as planned and secures its objectives.
Solution :
Preferred Common
Non cumulative and non Participative 12,600 67,400
Cumulative and non participative 37800 42200
Cumulative and participative 47876 32124
<u> Current Stock Out Standing </u>
Common stock at the rate 50 5100 shares 255000
Preferred stock 7% at the rate 100 1800 shares 180000
<u> Cumulative the annual dividend on the preferred stock </u>
Preferred stock dividend (180000 x 7%) 12600
Dividend Arrears to preferred stock (12600 x 2) 25200
<u> Non cumulative and non participative </u>
Preferred Common Total
Current year 12600 12600
Arrears 0 0
Common stock 67400 67400
Total dividend 12600 67400 80000
<u> Cumulative and non participative </u>
Preferred Common Total
Current year 12600 12600
Arrears 25200 25200
Common stock 42200 42200
Total dividend 37800 42200 80000
<u> Cumulative and participative</u>
Preferred Common Total
Current year 12600 12600
Arrears 25200 25200
Common stock (255000 x 7%) 17850 17850
Balance dividend pro data 10076 14274 24350
Total dividend 47876 32124 80000
Working notes :
Amount for the participation = 80000-(12600+25200+17850) = 24350
Rate of participation = = 5.5977%
Participating dividend:
Preferred stock = 18000 x 5.5977% = 10076
Common stock = 255000 x 5.5977% = 14274
Total participating dividend = 24350