Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year? (Round your final answer to nearest whole dollar.) $5 $6 $7 $4

Respuesta :

Answer:$5

Explanation:

The original stock price is $27 while the current worth of the stock is $32.

The profit earned is 37% altogether

Calculation of total profit earned

=27*37%

=$9.99 or rounded of to $10

Value of stock with profits earned = 27+10

=37

Calculation of amount of dividend

=37-32

=5

Therefore $5 is earned as dividend by Julio. And the capital gain is $5. So the total gain from holding the stock is $10.