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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

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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 () $33; (ii) $30; (1) $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.) (1) Percentage gain % () Percentage gain (iii) Percentage gain % % 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: () $30: () $27? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) (i) Rate of return % () Rate of return % (iii) Rate of return % 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 (1) $33; (ii) $30; (ii) $27? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) (1) Rate of return % % (i) Rate of return (iii) 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

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