Suppose that you borrow 6000 to establish your margin account and buy 200 share of Ecola company at the price 60 per share.

(1) If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if E-cola company is selling at 40, 60 or $80? Assume that E-cola company pays no dividends. (6 scores)

(2) If the maintenance margin is 25%, how low can E-cola companys price drop before you get a margin call? (4 scores)