Need help with Part-C-Redo parts a & b but now assume that Xtel also paid a year end dividend of $1.50 per share. The prices in part a should be interpreted as ex-dividend, that is, prices after the dividend has been paid? Answers to the other parts below

1. Suppose that you sell short $1,000 shares of Xtel, currently selling at $30 per share and give your broker $20,000 to establish your margin account
   1. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if xtel stock is selling at the following assuming no dividends
      1. $35=-25%
      2. $30=0%
      3. $25=25%
   2. If the maintenance margin is 25% how high can Xtels price rise before you get a margin call? 1000*30*25%=75000. 20000-7500=12500. 12500/1000=
      1. $12.5 per share. 30+12.5=$42.5 before margin call