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Question #4. [5 points). Suppose you buy a round lot of Altman Industries stock on a 50 percent margin when selling at $35 a share.

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Question #4. [5 points). Suppose you buy a round lot of Altman Industries stock on a 50 percent margin when selling at $35 a share. The broker charges a 10 percent annual interest rate, and commissions are 5 percent of the total stock value on purchase and the sale. The year-end dividend is $1.00 per share, and you sell the stock for $42.63. a) b) If the year-end dividend is $1.00 per share and you sell the stock for $42.63, what is your rate of return on the investment? What is your profit/loss if the price per stock fall to $28.63? If the maintenance margin is 25 percent, to what price can Altman Industries fall before you receive a margin call? C mu morain denosit is

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