Ltd. buys 2,400 of the 100,000 shares of Petrol Inc., paying $39.00 per share. Suppose Petrol distributes a 15 percent stock dividend. Later the same year, Jeffries Ltd. sells the Petrol shares for $31.00 per share. Disregard commissions on the purchase and sale.

1. Compute Jeffries Ltd.'s new cost per share after receiving the stock dividend.

2. Compute Jeffries Ltd.'s gain or loss on the sale of this long-term investment.