Analyzing and Computing Average Issue Price and Treasury Stock Cost
Following is the stockholders’ equity section from the Campbell Soup CompanyAc€ balance sheet.
| Shareholders’ Equity (millions, except per share amounts) | August 3, 2008 | July 29, 2007 | ||
|---|---|---|---|---|
| Preferred stock: authorized 40 shares; none issued | $ __ | $ __ | ||
| Capital stock, $0.0375 par value; authorized 560 shares; issued 532 shares |
20 | 20 | ||
| Additional paid-in capital | 337 | 331 | ||
| Earnings retained in the business | 7,927 | 7,132 | ||
| 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 shareowners’ equity | $1,336 | $1,345 |
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 | 532 | $20 | (163) | $(6,015) | $331 | $7,132 | $(123) | $1,345 | ||||||||
| Comprehensive income (loss) | ||||||||||||||||
| Net earnings | 1,165 | 1,165 | ||||||||||||||
| Foreign currency translation adjustments, net of tax |
112 | 112 | ||||||||||||||
| Cash-flow hedges, net of tax | 11 | 11 | ||||||||||||||
| Pension and postretirement benefits, net of tax |
(136) | (136) | ||||||||||||||
| Other comprehensive loss | (13) | (13) | ||||||||||||||
| Total comprehensive income | 1,152 | |||||||||||||||
| Impact on adoption of FIN 48 (Note 10) |
(18) | (18) | ||||||||||||||
| Dividends ($0.88 per share) | (352) | (352) | ||||||||||||||
| Treasury stock purchased | (26) | (903) | (903) | |||||||||||||
| Treasury stock issued under management incentive and stock option plans |
3 | 106 | 6 | 112 | ||||||||||||
| Balance at August 3, 2008 | 532 | $20 | (186) | $(6,812) | $337 | $7,927 | $(136) | $1,336 | ||||||||
(b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.)
$ 2