Calculate and interpret the company's market-to-book ratio at August 1, 2008.

Round answer to two decimal places.

Question 1 Partially correct Mark 3.00 out of 11 .00 y Flag 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. S holders qulty (m August 3, 2008 July 29, 2007 Preferred stock: authorized 40 shar S W S W Capital stock, 50.0375 par value: authorized 560 shares: issued 542 shares 20 20 Additional paidsin capital 337 331 Earnings retained in the business 7,866 7,072 Capital stock in treasury, 135 shares in zoos and 153 shares in 2007, at cost (6,812) (5,015) Accumulated other comprehensive loss (135) (123) Total shareholders' equity 3 1,275 3; 1,285 Assume Campbell Soup Company also reports the following statement of stockholders' equity. Accumulated Earnings Other Total Capital Stock \"we\" \"was\"? Additional Retainedin Comprehensive share-owners' (Millions, except per share amounts) Shares Amount Shares Amount inCapital the Eusiness Income 11.055) Equity Ealance at july 2'), 2007 542 S 20 1163) 516,015) 5 331 5 7,072 5 (123) 5 1,285 Net earnings 1,145 1,145 Other comprehensive income (loss) (13) (13) Impact on adoption of FIN 43 Note10) (14) (14) Dividends ($0.88 per share) 1337) 1337) Treasury stock purchased (25) (903) 1903) Treasury stock issued under managementincentive and stock options plan 3 106 5 112 Balance at August 3, 2008 542 s 20 (1 136) 3 (6,812) 3 337 5 7,355 s (136) 3 1,275 (a) Campbell Soup Company reports $20 million in its Common Stock account. which of the following statements best describes the manner in which this number is computed? The computation uses the numberof issued shares multiplied by the par value ofthe stockm' OThe computation uses the number of outstanding shares multiplied by the market price of the stock. 27 F' M \"l 0713,1202