The Equity section of the Campbell Soup Company balance sheet is shown below. (Note: Campbell's uses shareholders' equity instead of the more common title of shareholders' equity.)

Net Worth (millions, except per share amounts)	July 29, 2018	July 30, 2017
Preferred shares: 40 authorized shares; not aired	ps	ps
Capital stock, par value $.0375; authorized 560 shares;
issued 323 shares	12	12
Additional payment in principal	349	359
business retained earnings	2,224	2,385
Share capital in treasury, at cost	(1,103)	(1,066)
Other accumulated comprehensive loss	(118)	(53)
Total Equity of Campbell Soup Company Shareholders	1,364	1,637
No interest control	9	8
full equity	$1,373	$1,645

Campbell Soup Company also reports the following statement of shareholders' equity.

Campbell's Soup Company
(Millions, except per share amounts)					Additional Paid in principal	Earnings retained in the business	Accumulated Other Comprehensive Income (Loss)	non-controlling Interests	Full Equity
	Issued		in treasury
	share	Amount	share	Amount
Balance as of July 30, 2017	323	$12	(22)	$(1,066)	$359	$2,385	$(53)	$8	$1,645
Net profit (loss)						261			261
Other comprehensive income (loss)							(Sixty-five)	1	(64)
Dividends ($1.40 per share)						(422)			(422)
own shares purchased			(2)	(86)					(86)
Own shares issued under management incentive plans and stock options			2	49	(10)				39
Balance as of July 29, 2018	323	$12	(22)	$(1,103)	$349	$2,224	$(118)	$9	$1,373

(a) Campbell Soup Company reports $12 million in its common stock account. Which of the following statements best describes the way this number is calculated?

The calculation uses the number of shares issued multiplied by the par value of the shares.

The calculation uses the number of shares issued multiplied by the market value of the shares.

The calculation uses the number of shares outstanding multiplied by the market price of the shares.

The calculation uses the number of shares outstanding multiplied by the par value of the shares.

(b) At what average price were shares of Campbell Soup issued? (Round your answer to two decimal places.)
$Answer

(c) Reconcile the beginning and ending balances of retained earnings.

(Enter any deductions as negative numbers)

($ million)
Retained earnings, July 30, 2017	Answer
Net earnings	Answer
dividends	Answer
Miscellaneous	Answer
Retained earnings, July 31, 2018	Answer

(d) Campbell Soup reports an increase in shareholders' equity in connection with the exercise of stock options (entitled "Treasury Shares Issued Under Stock Option and Management Incentive Plans"). This transaction involves the purchase of common shares by employees at a pre-established price. Which of the following statements best describes the nature of this transaction?

The exercise of employee stock options resulted in the issuance of 2 million shares for a total of $39 million that was recognized as gain on sale, thereby increasing retained earnings.

The exercise of employee stock options resulted in the issuance of 2 million shares for a total of $39 million which was recognized as a reduction in treasury stock and a decrease in additional paid-in capital.

The exercise of employee stock options resulted in the issuance of 2 million shares for a total of $39 million which was recognized as an increase in common shares and additional paid-in capital.

The exercise of employee stock options resulted in the issuance of 2 million shares for a total of $39 million which was recognized as an increase in the common stock account only.

(e) Which of the following statements best describes the transaction related to the "Purchase of treasury stock" line item on the statement of stockholders' equity?

Campbell Soup repurchased 2 million shares of common stock for a total of $86 million. The effect of repurchasing shares is to recognize a loss on the repurchase, thus reducing cash and retained earnings.

Campbell Soup repurchased 2 million shares of common stock for a total of $86 million. This transaction had no effect on the components of Stockholders' Equity.

Campbell Soup repurchased 2 million shares of common stock for a total of $86 million. The effect of this transaction is to increase the Shareholders' Equity.

Campbell Soup repurchased 2 million shares of common stock for a total of $86 million. The effect of repurchasing shares is to reduce Cash and Stockholders' Equity.

(f) Campbell Soup's stock price was $32.99 on July 29, 2018. Determine the company's market capitalization on that day.
Enter the answer in millions. Round to the nearest million.
$million answer

(g) Calculate and interpret the market-to-book ratio of the company as of July 29, 2018.
Round the answer to two decimal places.
Answer