Old economy Traders opened an account to short sell 1000 shares of Internet Dreams. The Initial margin requirement was 50%. (the margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of 2$ per share.

1. What is the remaining margin on the account?

2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?

3. What is the rate of return on the investment?