Suppose you buy 100 shares of stock initially selling for $50, borrowing 30% of necessary funds from your broker (i.e. initial margin of 30% ). You pay an interest rate of 7% on the margin loans. The stock pays a dividend of $0.50 per share. a) What does your initial balance sheet look like? Change the numbers on the Excel spreadsheet accordingly. *The spreadsheet lists "Initial equity percentage," not "initial margin percentage." b) What will be your rate of return/loss for the following stock prices at the end of a one-year holding period? i) \$40, ii) \$50, iii) \$60 c) Suppose your initial margin is 50% instead. How does the increase in initial margin affect the loss and return of your position? d) How is your return or loss affected when borrowing on margin, compared to when trading without borrowing funds? Suppose you buy 100 shares of stock initially selling for $50, borrowing 30% of necessary funds from your broker (i.e. initial margin of 30% ). You pay an interest rate of 7% on the margin loans. The stock pays a dividend of $0.50 per share. a) What does your initial balance sheet look like? Change the numbers on the Excel spreadsheet accordingly. *The spreadsheet lists "Initial equity percentage," not "initial margin percentage." b) What will be your rate of return/loss for the following stock prices at the end of a one-year holding period? i) \$40, ii) \$50, iii) \$60 c) Suppose your initial margin is 50% instead. How does the increase in initial margin affect the loss and return of your position? d) How is your return or loss affected when borrowing on margin, compared to when trading without borrowing funds