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b. If the maintenance margin is 20% , how low can XTel's price fall before you get a margin call? (Round your answer to 2

b. If the maintenance margin is

20%

, 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 b would change if you had financed the initial purchase with only

$17,500

of your own money? (Round your answer to 2 decimal places.)\ Price\

$,12.50

\ d. What is the rate of return on your margined position (assuming again that you invest

$28,000

of your own money) if XTel is selling after one year at (i)

$56

; (ii)

$50

; (iii)

$44

? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)\ \\\\table[[(i) Rate of return,,

%
image text in transcribed
b. If the maintenance margin is 20%, how low can XTel's price fall before you get a margin call? (Round your answer to 2 decimal places.) c. How would your answer to requirement b would change if you had financed the initial purchase with only $17,500 of your own money? (Round your answer to 2 decimal places.) d. What is the rate of return on your margined position (assuming again that you invest $28,000 of your own money) if XTel is selling after one year at (i) $56; (ii) $50; (iii) $44 ? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

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