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%.

d. What is the rate of return on your margined position (assuming again that you invest $17,500 of your own money) if XTel is selling after one year at (i) $56; (ii) $50; (iii) $44? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

e. 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 30% (Round your answer to 2 decimal places.)