Question
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders'
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet.
Shareholders' Equity (millions, except per share amounts) | August 3, 2008 | July 29, 2007 |
---|---|---|
Preferred stock: authorized 40 shares; non issued | $ -- | $ -- |
Capital stock, $0.0375 par value; authorized 560 shares; issued 582 shares | 22 | 22 |
Additional paid-in capital | 337 | 331 |
Earnings retained in the business | 7,930 | 7,112 |
Capital stock in treasury, 186 shares in 2008 and 163 shares in 2007, at cost | (6,812) | (6,015) |
Accumulated other comprehensive loss | (136) | (123) |
Total shareholders' equity | $ 1,341 | $ 1,327 |
Assume Campbell Soup Company also reports the following statement of stockholders' equity.
(Millions, except per share amounts) | Capital Stock | Additional Paid-in Capital | Earnings Retained in the Business | Accumulated Other Comprehensive Income (Loss) | Total share-owners' Equity | |||
---|---|---|---|---|---|---|---|---|
Issued | In Treasury | |||||||
Shares | Amount | Shares | Amount | |||||
Balance at July 29, 2007 | 582 | $ 22 | (163) | $ (6,015) | $ 331 | $ 7,112 | $ (123) | $ 1,327 |
Net earnings | 1,175 | 1,175 | ||||||
Other comprehensive income (loss) | (13) | (13) | ||||||
Impact on adoption of FIN 48 Note 10) | (10) | (10) | ||||||
Dividends ($0.88 per share) | (347) | (347) | ||||||
Treasury stock purchased | (26) | (903) | (903) | |||||
Treasury stock issued under management incentive and stock options plan | 3 | 106 | 6 | 112 | ||||
Balance at August 3, 2008 | 582 | $ 22 | (186) | $ (6,812) | $ 337 | $ 7,930 | $ (136) | $ 1,341 |
(b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.) ???
c) Reconcile the beginning and ending balances of retained earnings.
(Enter any deductions as a negative numbers.)
($ millions) | |
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Retained earnings, July 29, 2007 | Answer
|
Net earnings | Answer
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Dividends | Answer
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Miscellaneous | Answer
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Retained earnings, August 3, 2008 | Answer
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F) Campbell Soups stock price was $35.85 on August 1, 2008 (the closest trading day to fiscal year-end). Determine the companys market capitalization that day. Enter answers in millions. Round answer to the nearest million. $Answer???
G) Calculate and interpret the companys market-to-book ratio at August 1, 2008. Round answer to two decimal places. Answer???
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