A quick search on CPAN brought me to Devel::CallTrace, which ties into the Perl debugger mechanism, but doesn't provide arguments and return values (although the code seems short enough that I guess it could probably be extended). Then there's Debug::Trace, which works by simply wrapping the requested subs with code that prints their arguments and return values:

$ cat foo.pl 
#!/usr/bin/env perl
use warnings;
use strict;

sub foo { bar($_[0] x 3)."-".quz(ord($_[0])) }

sub bar { $_[0].length($_[0]) }

sub quz { $_[0].$_[0] }

print foo($_), "\n" for 'a'..'b';

$ perl -MDebug::Trace=foo,bar,quz foo.pl
TRACE:    main::foo("a") called at foo.pl line 11 package main
TRACE:    main::bar("aaa") called at foo.pl line 5 sub main::foo
TRACE:    main::bar() returned: "aaa3"
TRACE:    main::quz(97) called at foo.pl line 5 sub main::foo
TRACE:    main::quz() returned: 9797
TRACE:    main::foo() returned: ("aaa3-9797")
aaa3-9797
TRACE:    main::foo("b") called at foo.pl line 11 package main
TRACE:    main::bar("bbb") called at foo.pl line 5 sub main::foo
TRACE:    main::bar() returned: "bbb3"
TRACE:    main::quz(98) called at foo.pl line 5 sub main::foo
TRACE:    main::quz() returned: 9898
TRACE:    main::foo() returned: ("bbb3-9898")
bbb3-9898
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At the bottom of the Devel::CallTrace doc, there are a few more references to other modules.

Update: Minor updates to wording.