and

e. Continue to assume that a year has passed. How low can WN price fall before you get a margin call? (Round your answer to 2 decimal places. Omit $ sign in your response.)

Margin call will be made at price ___ $

Suppose that Weston (WN) currently is selling at $70 per share. You buy 250 shares, using $10,000 of your own money and borrowing the remainder of the purchase price from your broker. The rate the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of WN immediately changes to (0) $78.40; (ii) $70; (iii) $61.60? (Leave no cells blank - be certain to enter "O" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) (i) Percentage gain (ii) Percentage gain (iii) Percentage gain % b. If the minimum margin is 25%, how low can WN's price fall before you get a margin call? (Round your answer to 2 decimal places. Omit $ sign in your response.) Margin call will be made at price c. How would your answer to (b) change if you had financed the initial purchase with only $8,750 of your own money? (Round your answer to 2 decimal places. Omit $ sign in your response.) Margin call will be made at price d. What is the rate of return on your margined positi (assuming again that you invest $10,000 of your own money) if WN is selling after one year at (i) $78.40; (ii) $70; (iii) $61.60? Assume that WN pays no dividends. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) (i) Rate of return (ii) Rate of return (iii) Rate of return