Refer to the annual report of CVS Corporation and the financial statements of Southwest Airlines Co. in the Supplement to Chapter 1.
1. Business application- Compute the return on equity for both companies for fiscal 2011 and 2010. Total stockholders' equity for CVS and Southwest in 2009 was $35,768 million and $5,454 million, respectively.
2. Business application- Did either company purchase treasury stock during these years? How will the purchase of treasury stock affect return on equity and earnings per share?
3. Did either company issue stock during these years? What are the details?
4. Compare the dividend policy of the two companies.
Text book: Principles of Accounting By Belverd Needles, Marian Powers, Susan Crosson.