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 2004?

2. What is the dividends yield (use average price of stock in last quarter) for CVS and its relationship to the investors’ total return? Does the company rely mostly on stock or on earnings for its stockholders’ equity?

3. 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?

Comparison Case: CVS Versus Southwest Return on Equity, Treasury Stock, and Dividends Policy