Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Assume Campbell Soup Company also reports the following statement of stockholders' equity. The computation uses the number of outstanding shares multiplied by the market price of the stock. The computation uses the number of issued shares multiplied by the par value of the stock. The computation uses the number of issued shares multiplied by the market value of the stock. The computation uses the number of outstanding shares multiplied by the par value of the stock. (b) At what average price were the Campbell 5 oup shares issued? (Round your answer to two decimal places.) $ (c) Reconcile the beginning and ending balances of retained earnings. (Enter any deductions as negative numbers.) transaction involves the purchase of common stock by employees at a preset price. Which of the following statements best describes the nature of this transaction? The exercise of employee stock options resulted in the issuance of 3 million shares of stock for a total of $112 million that was recognized as a gain on sale, thus increasing Retained Earnings. rhe exercise of employee stock options resulted in the issuance of 3 million shares of stock for a total of $112 million that was recognized as an increase in the Common Stock account only. The exercise of employee stock options resulted in the issuance of 3 million shares of stock for a total of $112 million that was recognized as a reduction of Treasury 5 tock and an increase in Additional Paid-In Capital. The exercise of employee stock options resulted in the issuance of 3 million shares of stock for a total of $112 million that was recognized as an increase in the Common Stock and in the Additional Paid-In Capital. (e) Which of the following statements best describes the transaction relating to the "Treasury stock purchased" line in the statement of stockholders' equity? Campbell Soup repurchased 26 million shares of common stock for a total of $903 million. This transaction had no effect on the components of Stockholders' Equity. Campbell Soup repurchased 26 million shares of common stock for a total of 5903 million. The effect of the repurchase of stock is to reduce Cash and Stockholders' Equity. Campbell Soup repurchased 26 million shares of common stock for a total of $903 million. The effect of this transaction is to increase Stockholders' Equity. Camphell Soup repurchased 26 million shares of common stock for a total of 5903 million. The effect of the repurchase of stock is to recognize a loss on the repurchase, thus reducing Cash Retained Earnings. (f) Campbell Soup's stock price was $35.85 on August 1, 2008 (the closest trading day to fiscal year-end). Determine the company's market capitalization that day. Enter answers in millions. Round answer to the nearest million. \$ million (g) Calculate and interpret the company's market-to-book ratio at August 1, 2008. Round answer to two decimal places
