Final Business Report

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Running head: CVS HEALTH CORP

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CVS HEALTH CORP

The total stakeholders’ equity value was $37.938M during the third quarter of the fiscal year 2013/2014. The change in stockholder’s’ equity can be attributed to change in common stock valuation, the value of retained earnings and treasury stock. Also, the change is due to declining capital surplus over time and to change in other items constituting stockholder equity.

The largest component of stockholders' equity is capital surplus. For the fiscal year 2013, the value of capital surplus was $29.777M. CVS Health Corp does not have any preferred stocks. Thus, there cannot be any dividend rates. In addition, there are no issued and outstanding shares. At the end of fiscal year 2013, the common stocks are valued at $17M with a par value of $0.01. During the fiscal year 2013, 3200 shares were authorized, 1,690 shares were issued and 1,153 shares were outstanding (Yahoo! Finance, 2015).

From the income statement, during the fiscal year ending 2013, CVS Health Corp declared dividends. The dividend per share from the Common Stock Primary Issue was at $ 0.23.

CVS Health Corp announced a share repurchase of approximately $6 billion of the company’s unpaid common stock. The repurchase program allowed the corporation to effect repurchases once in a while through a blend of privately negotiated transactions, open market repurchases, derivative transactions and accelerated share repurchase transactions.

CVS Health Corp return on shareholders’ equity for the fiscal year 2013/2014 had a value of 12.10%. The reason behind the increase in the rate of shareholders’ equity is due to the increase in operating profitability as measured by the EBIT Margin. The rate of return on common stockholders’ equity for the fiscal year 2013/2014 was 6.42%. The rate increased in 2013 due to increasing profitability as measured by the Net Profit Margin (Yahoo! Finance, 2015).