Gerber Ltd. buys 2,000 of the 100,000 shares of Efron Inc., paying $35.00 per share. Suppose Efron distributes a 10 percent stock dividend. Later the same year, Gerber Ltd. sells the Efron shares for $29.00 per share. Disregard commissions on the purchase and sale.

1. Compute Gerber Ltd.'s new cost per share after receiving the stock dividend.
2. Compute Gerber Ltd.'s gain or loss on the sale of this long-term investment

hint; 1. Measuring gain or loss on the sale of a share investment after receiving a stock dividend 2. Loss on sale, $6,200