Refer to the CVS Corporation annual report in the Supplement to Chapter 1 to answer the following questions:
1. What type of capital stock does CVS have? What is the par value? How many shares were authorized, issued, and outstanding at the end of fiscal 2011?
2. Business application- What is the dividend yield (use average price of stock in last quarter) for CVS and its relationship to the investors' total return? (Round the average price to the nearest cent; round the dividend yield to the nearest tenth of a percent.) Does the company rely mostly on stock or on earnings for its stockhold- ers' equity? (CVS's fourth quarter of 2011 high and low market prices were $41.35 and $32.28, respectively.)
3. Business application- Does the company have a stock option plan? To whom do the stock options apply? Do employees have significant stock options? Given the market price of the stock shown in the report, do these options represent significant value to the employees?
Text book: Principles of Accounting By Belverd Needles, Marian Powers, Susan Crosson.