Suppose XYZ Corp stock is currently selling for $40 a share. You invest $10,000 of your own money to buy on margin. The initial margin rate is 60% and the minimum maintenance margin is 30%. The interest rate on margin loan is 8%. The stock paid $1 in dividends per share and you paid $0.50 per share as commission.

1. If the stock price increases to $52 after one year, show the T-Account calculations for Margin calculations and calculate your rate of return

2. If the stock price falls to $32 after one year, show the T-Account for margin calculations and calculate your rate of return

3. How far does the price have to fall before you get a margin call?