1. 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 firms dividend growth rate?
2. How would issuing the preferred stock affect the capital structure of the firm in comparison to the common stock?
3. Why is the dividend distribution and voting structure a matter of interest to the Vitalitys board?
4. What recommendations would you make in improving the financial prospect of the company especially with respect to the relevant ratios?