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 $8\%.$

Requlred:

a$.$ What is the percentage Increase In the net worth of your brokerage account If the price of XTel $/$mmediately changes to $($I$)$ $$33$; $($II$)$

$$30$; $($II$)$ $$27?($Leave no cells blank $-$ be certaln to enter $"0"$ wherever requlred. Negatlve values should be Indicated by a minus

sign. Round your answers to $2$ decimal places.$)$

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.$)$

c$.$ How would your answer to requirement b would change If you had financed the Inltial purchase with only $$12,000$ of your own

money? $($Round your answer to $2$ decimal places.$)$

Price

This is a numeric cell,

so please enter

numbers only.

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 $($I$)$ $$33$; $($II$)$ $$30$; $($III$)$ $$27?($Negatlve values should be Indlcated by a minus sign. Round your answers to $2$ decimal

places.$)$

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.$)$