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Suppose that XTel currently is selling at $50 per share. You buy 500 shares using $17,500 of your own money, borrowing the remainder of the

Suppose that XTel currently is selling at $50 per share. You buy 500 shares using $17,500 of your own money, borrowing the remainder of the purchase prtce from your broker. The rate on the margin loan is 8%. a. What is the percentage Increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $56. (b) $50, (c) $44? (Leave no cells blank - be certain to enter "O" wherever requlred. Negative values should be Indicated by a minus sign. Round your answers to 2 decimal places.) aPercentage gain DPeroentage gain Percentage gain b. If the maintenance margin is 30%, 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 2 would change if you had financed the Intial purchase with only $12.500 of your own money (Round your answer to 2 decimel places.)
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Suppose that XTel currently is selling at $50 per share you buy 500 shares using $17.500 of your own money, borrowing the remainder of the purchase price from your broker The rate on the margin loan is 8% a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to (8) $56,() $50,19 544? (Leave no cells blank.be certain to enter "o" wherever requlred. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) Percentage on b Percentage gain Percentage gan b. If the maintenance margin 1 30% how low can XTel's price falt before you get a margin cal? (Round your answer to 2 decimal places) Prion c. How would your rower to requirement 2 would change you had financed the initial purchase was only $12.500 of your own money Round your answer to 2 decimal places) d. What is the rate of return on your margined position (assuming again that you invest $17.500 of your own money if XTer is selling after one year at (a) $56 (6) $50. (C) $44? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places. 3. Rate of retum Pate ofretum Rate ofretum e. Continue to assume that a year has passed. How low can XTer's price fail before you get a margin call? (Round your answer to 2 decimal places.) Pro

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