Refer to the annual report for CVS Corporation and the financial statements for Southwest Airlines Co. in the Supplement to Chapter 1. Compute the 2004 and 2003 book value per share for both companies and compare the results to the average stock price of each in the fourth quarter of 2004 as shown in the notes to the financial statements. Southwest’s average price per share was $45.22 in 2004 and $27.37 in 2003. How do you explain the differences in book value per share, and how do you interpret their relationship to market prices?

Ethical Dilemma Case Ethics and Stock Dividends