This problem is based on the 2014 annual report of Campbell Soup Company. Requir

Question

This problem is based on the 2014 annual report of Campbell Soup Company. Required: a. Compute the following profitability measures for the year ended August 3, 2014 (Dividends declared were $1.248 per common share): 1. Return on investment, based on net earnings (perform a DuPont analysis). (Round your answer to 1 decimal place.) Answer is complete and correct 9.901% Ol 2. Return on equity, based on net earnings and total equity. (Round your answer to 1 decimal place.) Answer is complete and correct. Roe-I 57.40 % | ROE 3. Price/earnings ratio. Use $41.96 as the year-end market price. (Round your answer to 1 decimal place.) Answer is complete and correct Price/earnings ratio 16.2

Explanation / Answer

Dividend pay-out ratio = 48.19

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Dividend pay-out = Dividend per share/EPS

                             = 1.248/2.59

                             = 0.48185 or 48.19%

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