Refer to CVS Corporation annual report in the Supplement to Chapter 5 to answer the following questions:

Question:

1. What types of capital stock does CVS have? What is he par value? How many shares were authorized, issued, and outstanding at the end of fiscal 2008?

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? (CVS’s fourth quarter of 2008 high and low market prices were $34.90 and $23.19, respectively).

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?

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...