How will purchase of treasury stock affect return on equity

Assignment Help Financial Accounting

Reference no: EM13914172

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.

Reference no: EM13914172

Questions Cloud

What are the reasons companies buy back their own shares : What are the reasons companies buy back their own shares? What is the effect of common stock buybacks on earnings per share, return on equity, return on assets, debt to equity, and the current ratio?

What amount per share did google receive : What amount per share did Google receive and how much did Google's underwrit- ers receive to help in issuing the stock? What do underwriters do to earn their fee?

Many companies must file financial reports : Many companies must file financial reports with the SEC. Many of these reports are available electronically through the EDGAR database.

What type of capital stock does cvs have : 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 2011?

How will purchase of treasury stock affect return on equity : Did either company purchase treasury stock during these years? How will the purchase of treasury stock affect return on equity and earnings per share?

Does the company have treasury stock : Does the company have treasury stock? What effect does it have on total stockholders' equity? Business application- Compute return on equity for your company.

Supplemental information on operating segments : Total liabilities of a company's reportable segments must be reported when the company provides supplemental information on operating segments using

The market price of the stock : On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share,

What is an argument for treating purchases of treasury stock : Which statement is more useful-the income statement or the statement of cash flows? In computing free cash flow, what is an argument for treating the purchases of treasury stock like dividend payments?

User Account

All Pages