Julio purchased a share one year ago for $27. The share is now worth $32, and the total return to Julio for owning the share was 37 per cent. What is the dollar amount of dividends that he received for owning the share during the year?
A) $4
B) $5
C) $6
D) $7

Question

Quizplus · Accepted Answer

The total return is 37%, which includes both capital gains and dividends. The capital gain is $32 - $27 = $5. The total return in dollars is 0.37 * $27 = $9.99 (approximately $10). Therefore, the dividends received are $10 - $5 = $5.

Julio Purchased a Share One Year Ago for $27