On December 5, 2013, the Toronto-Dominion Bank (TD) announced, and on January 31, 2014 the bank paid, a stock dividend of one common share for each common share issued and outstanding. Access TD's December 5, 2013 news release and its financial statements for the fiscal years ended October 31, 2013 and 2014 on SEDAR (www.sedar.com) or the company's website.

Instructions
(a) Why might TD have paid a stock dividend? Was this stock dividend in substance, or was it a stock split? Explain briefly.
(b) What effect did this share transaction have on (1) total shareholders' equity, (2) total book value of the common shares' contributed capital reported, (3) number of outstanding shares, and (4) book value per share? Examine the 2013 numbers as originally filed and the restated 2013 comparison numbers in the 2014 year-end annual financial statements to reflect this change for number of shares outstanding, the total dollar value of common shares outstanding, and earnings per share data.
(c) What effect did the transaction have on the dividends declared and paid per common share and on the share's market value? What has since happened to its price on the Toronto Stock Exchange?