De Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate on the loan is 5%.

Required: a. What is the margin in Des account when she first purchases the stock?

b. If the share price falls to $19 per share by the end of the year, what is the remaining margin in her account?

c. If the maintenance margin requirement is 30%, will she receive a margin call?

multiple choice

Yes

No

d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)