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Suppose that XTel currently is selling at $ 3 0 per share. You buy 6 0 0 shares using $ 1 3 , 5 0
Suppose that XTel currently is selling at $ per share. You buy shares using $ of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is What is the rate of return on your margined position assuming again that you invest $ of your own money if XTel is selling after one year at i $; ii $; iii $ Continue to assume that a year has passed. How low can XTels price fall before you get a margin call? Note: Assume maintenance margin of
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