Suppose that Xtel currently is selling at $$72$ per share. You buy $400$ shares using $$22,000$ of your own money, borrowing the

emainder of the purchase price from your broker. The rate on the margin loan is $9\%.$

e$.$ What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: $($i$)$ $$79\mathrm{.}92$; $($ii$)$

$572$; $($iii$)$ $$64\mathrm{.}08?$ What is the relationship between your percentage return and the percentage change in the price of Xtel? $($Leave no

Eells blank $-$ be certaln to enter $"$O$"$ wherever requlred. Negatlve values should be Indlcated by a minus sign. Round your answers

Fo $2$ declmal places.$)$

Answer is complete and correct.

p$.$ If the maintenance margin is $25\%,$ how low can Xtel's price fall before you get a margin call? $($Round your onswer to $2$ declmal

places.$)$

Answer is complete and correct.

Margin call will be made at price

$$,22\mathrm{.}67$

or lower

E$.$ How would your answer to $(b)$ change if you had financed the initial purchase with only $$14,400$ of your own money? $($Round your

answer to $2$ decimal ploces.$)$

Answer is not complete.

Margin call will be made at price

d$.$ What is the rate of return on your margined position $($assuming again that you invest $$22,000$ of your own money$)$ if Xtel is selling

after $1$ year at: $($i$)$ $$79\mathrm{.}92$; $($ii$)$ $$72$; $($iii$)$ $$64\mathrm{.}08?$ What is the relationship between your percentage return and the percentage change in

he price of Xtel? Assume that Xtel pays no dividends. $($Negatlve values should be lndlcated by a minus slgn$.$ Round your answers to

$2$ decimal places.$)$

Answer is not complete.

$=.$ 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.$)$

Answer is not complete.