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 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) Noncontrolling Interest Total share-owners' Equity Issued In Treasury Shares Amount Shares Amount Balance at August 2, 2009 542 $ 20 (199) $ (7,194) $ 332 $ 8,288 $ (718) $ 3 $ 731 Comprehensive income (loss) -- Net earnings 844 844 Foreign currency translation adjustments, net of tax 39 -- 39 Cash-flow hedges, net of tax 2 2 Pension and postretirement ;benefits, net of tax (59) (59) Other comprehensive (loss) (18) -- (18) Total comprehensive income (loss) 826 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? The computation uses the number of issued shares multiplied by the par value of the stock. The computation uses the number of outstanding shares multiplied by the par value of the stock. 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 market value of the stock. Mark 1.00 out of 1.00 (b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.) $Answer