On January 1, you sold short one round lot (that is, 100 shares) of Snow's stock at $27.50 per share. On March 1, a dividend of $1.10 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $24.00 per share. You paid 45 cents per share in commissions for each transaction. Required: a. What is the proceeds from the short sale (net of commission)? Proceeds from the short sale $2,100 b. What is the dividend payment? Dividend payment $ 110 c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $24.00 per share? Total cost including commission $ 6,900 d. What is the net gain from your transaction? Suppose that XTel currently is selling at $30 per share. You buy 800 shares using $18,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. Required: a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (1) $33: (1) $30; (i) $27? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) % (i) Percentage gain (i) Percentage gain (iii) Percentage gaini % % b. If the maintenance margin is 25%, 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 $12,000 of your own money? (Round your answer to 2 decimal places.) Price d. What is the rate of return on your margined position (assuming again that you invest $18,000 of your own money) if XTel is selling after one year at () $33; (ii) $30; (ii) $27? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) (0) Rate of return % (ii) Rate of return % (ii) Rate of return % e. Continue to assume that a year has passed. How low can XTel's price fall before you get a margin call? Note: Assume maintenance margin of 25% (Round your answer to 2 decimal places.) Price