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Need help answering part D and E and why it would be that. Analyzing and Computing Average Issue Price and Treasury Stock Cost Following is the stockholders' equity section from the Campbell Soup Company balance sheet.

Analyzing and Computing Average Issue Price and Treasury Stock Cost Following is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders' Equity (millions, except per share amounts) August 1, 2010 August 2, 2009 Preferred stock: authorized 40 shares; non issued $ - Capital stock, $0.0375 par value: authorized 560 shares; issued 542 shares 20 20 Additional paid-in capital 341 332 Earnings retained in the business 8,760 8.288 Capital stock in treasury, at cost (7,459) (7,194) Accumulated other comprehensive loss (736) (718) Total CampbellSoup Company shareowners' equity 926 728 Noncontrolling interest 3 3 Total equity $ 929 $ 731 $731 Campbell Soup Company also reports the following statement of stockholders' equity. Accumulated Capital Stock Earnings Other Total Issued In Treasury Additional Retained in comprehensive Noncontrolling share-owners' (Millions, except per share amounts) Shares Amount Shares Amount Paid-in Capital the Business Income (Loss) Interest Equity Balance at August 2, 2009 542 $ 20 (199) $ (7,194) $ 332 $8,288 $ (718) $3 Net earnings 844 844 Other comprehensive income (loss) (18) (18) Dividends ($0.88 per share) (372) (372) Treasury stock purchased (14) (472) (472) Treasury stock issued under management incentive and stock options plan 7 207 9 216 Balance at August 1, 2010 542 $20 (206) $ (7,459) $ 341 $ 8,760 $ (736) $3 $ 929 (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? OThe computation uses the number of issued shares multiplied by the par value of the stock. OThe computation uses the number of outstanding shares multiplied by the par value of the stock. OThe computation uses the number of outstanding shares multiplied by the market price of the stock. OThe computation uses the number of issued shares multiplied by the market value of the stock. (b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.) $ 0.67 (Enter any deductions as negative numbers.) ($ millions) Retained earnings, August 2, 2009 $ 8,288 Net earnings 844 Dividends (372) Miscellaneous 472 Retained earnings, August 1, 2010 $ 8,760 (d) Campbell Soup reports an increase in stockholders' equity relating to the exercise of stock options (titled "Treasury stock issued under management incentive and stock option plans"). This 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? OThe exercise of employee stock options resulted in the issuance of 7 million shares of stock for a total of $216 million that was recognized as a reduction of Treasury Stock and an increase in Additional Paid-In Capital. OThe exercise of employee stock options resulted in the issuance of 7 million shares of stock for a total of $216 million that was recognized as an increase in the Common Stock account only. OThe exercise of employee stock options resulted in the issuance of 7 million shares of stock for a total of $216 million that was recognized as an increase in the Common Stock and in the Additional Paid-In Capital. The exercise of employee stock options resulted in the issuance of 7 million shares of stock for a total of $216 million that was recognized as a gain on sale, thus increasing Retained Earnings. (e) Which of the following statements best describes the transaction relating to the "Treasury stock purchased" line in the statement of stockholders' equity? OCampbell Soup repurchased 14 million shares of common stock for a total of $472 million. This transaction had no effect on the components of Stockholders' Equity. OCampbell Soup repurchased 14 million shares of common stock for a total of $472 million. The effect of the repurchase of stock is to reduce Cash and Stockholders' Equity. OCampbell Soup repurchased 14 million shares of common stock for a total of $472 million. The effect of the repurchase of stock is to recognize a loss on the repurchase, thus reducing Cash and Retained Earnings. OCampbell Soup repurchased 14 million shares of common stock for a total of $472 million. The effect of this transaction is to increase Stockholders' Equity. (1) Campbell Soup's stock price was $35.90 on July 30, 2010(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. $ 12,062 million (g) Calculate and interpret the company's market-to-book ratio at July 30, 2010. Round answer to two decimal places. 12.98

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