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Suppose that Xtel currently is selling at $44 per share. You buy 500 shares using $18,000 of your own money, borrowing the remainder of the

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Suppose that Xtel currently is selling at $44 per share. You buy 500 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 7% a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: (0550.60, (1) $44 (1) $3740? What is the relationship between your percentage return and the percentage change in the price of Xtel? (Leove no cells blank - be certain to enter "o" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) i Percentage gain it Percentage gain lii, 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.) Margin call will be made it price for lower C. How would your answer to (b) change if you had financed the initial purchase with only $11.000 of your own money? (Round your answer to 2 decimal places.) Margin call will be made at price for lower 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 1 year at (0) $50.60,00) $44() $3740? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel pays no dividends (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) ces * % L Rate of return Rate of return M. 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? (Round your answer to 2 decimal places.) Margin call will be made at price of lower

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