1. Today (9/10), you own 100 shares of GE and you want to buy MFST stock. You decide to sell all of your shares to fund your purchase. GE is currently trading at $25 and MFST is trading at $50. If you were to buy on margin, with a 50% margin (the maximum allowed), what would your balance sheet look like?

2. Suppose your broker set a minimum margin requirement of 30%. How far could the price of MFST fall tomorrow before a margin call?

3. Now suppose that the loan has a 5% interest rate per day , how far could the price of MFST fall tomorrow before you receive a margin call?

Please show all formulas