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Suppose that LMN stock currently is selling at $79 per share. You buy 500 shares using $30,000 of your own money, borrowing the remainder of

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Suppose that LMN stock currently is selling at $79 per share. You buy 500 shares using $30,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 5%. a. What is the percentage increase in the net worth of your brokerage account if the price of LMN immediately changes to: (1) $8720; (11) $79; (1) $70.80? What is the relationship between your percentage return and the percentage change in the price of LMN? (Leave no cells blanke - be certain to enter "o" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) 1 . Percentage gain Percentage gain Percentage gain % % b. If the maintenance margin is 25%, how low can LMN's price fall before you get a margin call? (Round your answer to 2 decimal places.) Margin call will be made at price (or lower c. How would your answer to change if you had financed the initial purchase with only $19,750 of your own money? (Round your answer to 2 decimal places.) Margin call will be made at price or lower

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