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Answer this question Suppose that XTer currently is selling at $30 pet share. You buy 600 shares using $13,500 of your own money, bonowing the
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Suppose that XTer currently is selling at $30 pet share. You buy 600 shares using $13,500 of your own money, bonowing the remainder of the purchase price from your broker. The rate on the margin loan is 6% o. What is the percentage increase in the net worth of your brokerage account if the price of Telinmediately changes to (a) $33: (b) $30 (c) $27? (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.) Porcentagegen Porcentage gain c Percentage gain 16 b. If the maintenance margin is 25. how low can XTel's price fall before you get a margin call? (Round your answer to 2 decimal places) Price c. How would your answer to requirement 2 would change if you had financed the initial purchase with only $9,000 of your own money? (Round your answer to 2 decimal places.) Strike price d. What is the rate of return on your margined position (assuming again that you invest $13.500 of your own money if X Tel is selling after one year at (e) $33; (b) $30: () $27? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) a Rate of Tofum b. Rate of return Rate of retum e. Continue to assume that a year has passed. How low can XTel's price fall before you get a margin call? (Round your answer to 2 decimal places.) PriceStep by Step Solution
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