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1. What coupon rate should be applied to the new bonds if VVI wants to sell them at par? (Use values in the dollar)

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1. What coupon rate should be applied to the new bonds if VVI wants to sell them at par? (Use values in the dollar) 2. What is the yield to maturity on a 14-year bond? 3. What should be the price of the third bond being considered for an issue? 4. What is the projected stock price for the coming year, if VVI just paid a $2 dividend? 5. Assuming VVI's stock is currently selling for $51, the expected dividend one year from now is $1.50 and the required return is 10, what is the firm's dividend growth rate? W 6. How would issuing the preferred stock affect the capital structure of the firm in comparison to the common stock? 7. Why is the dividend distribution and voting structure a matter of interest to the Vitality's board? 8. What recommendations would you make in improving the financial prospect of the company especially with respect to the relevant ratios?

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