Julio purchased a share one year ago for $25. The share is now worth $30, and the total return to Julio for owning the share was 40 per cent. What is the dollar amount of dividends that he received for owning the share during the year? $4 $6 o $7 o 5 O

Total Investment on the share was 25. The return earned on the share is 40%.

The Return earned in Dollar Terms are = Initial Investment * Return percentage

= 25 * 40%

= 10

This return of 10, consisting of Capital Gain return and Dividend return.

The price of the share increased from 25 to 30, so the capital gain return was (30 - 25) = 5. Capital Gain Return is the return that an investor receives from an increase in the share price.

So out of $10 return, $5 is from capital gains return, so the rest $5, is from Dividend return.

The correct option is the last one, which is $5