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Suppose that XTel currently is selling at $50 per share. You buy 500 shares using $16,000 of your own money, borrowing the remainder of the
Suppose that XTel currently is selling at $50 per share. You buy 500 shares using $16,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 10%. What is the percentage increase in the net worth of your brokerage account if the price of Tel immediately changes to ($55:00 $50; (1) $452 O 16.67%; (10) 0.00%: (11) - 16.67% O 0-16.67%; (1) 0.00%; (i) 16.67% O 0 13.334; (11) 0.00%; (1) -13.33% O 0-13.33%; m) 0.00%; (11) 13.33% O 0 0.00%; 0.00% (1) 0,00% None of the above
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