(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin.

1. In one year the investor has interest payable and gets a margin call. What is the stock price that triggers the margin call?
2. How much additional cash should the investor put in his account to restore the 50% initial margin after receiving the margin call?
3. Suppose that the investor didnt put in additional cash to satisfy the margin call. As a result, the brokers liquidated his position at the price that triggered the margin call. What is the investors return from the investment in this stock?