1. Assume you have $50,000 to invest and you chose CMT Company stock when its price was $50 per share. During the year, CMT paid dividends of $2.00 per share. If you sell your shares after one year at a price of $58 per share;

1. What is your rate of return?
2. Assume your investment is with equity margin of 40%. What is your rate of return?
3. What would be the rate of return if price fell to $45 instead? Assume margin case.
4. At what price will you get a margin call if the maintenance margin is 25%?