Refer tot the annual report for CVS Corporation and the financial statements for Southwest Airline Co. in

Question:

Refer tot the annual report for CVS Corporation and the financial statements for Southwest Airline Co. in the Supplement to Chapter 5. Compute the 2008 and 2007 book value per share for both companies and compare the results to the average stock price of each in the fourth quarter of 2008 as shown in the notes to the financial statements. Southwest’s average price per share was $11.01 in 2008 and $13.59 in 2007. How do you explain the differences in book value per share, and how do you their relationship to market prices?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...