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Suppose that XTel currently is selling at $50 per share. You buy 800 shares using $30,000 of your own money, borrowing the remainder of
Suppose that XTel currently is selling at $50 per share. You buy 800 shares using $30,000 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 () $55:00 $50 (1) $45? (Leave 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 (6) Percentage gain () 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
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