The following dividend announcement was made by Campbell Soup Company on November 18, 2004:

Campbell Soup Company today announced that the Company’s Board of Directors declared a regular quarterly dividend on its capital stock of $.17 per share. The dividend is payable January 31, 2005 to shareholders of record at the close of business on January 3, 2005.

Campbell Soup had 410,000,000 common shares issued and outstanding on the dividend record date. The most recent annual earnings were $647,000,000. Campbell’s stock price at the time of the dividend record date was $30 per share.

a. What is the business purpose of a dividend?

b. Record Campbell Soup’s quarterly dividend declaration.

c. How is Campbell Soup’s dividend reported?

d. Calculate and interpret Campbell Soup’s annualized dividend yield and dividend payout ratio to one place after the decimal point.