Suppose you buy 1000 shares of stock initially selling at $50, borrowing 25% of the necessary funds from your broker. You pay an interest rate of 8% on your margin loans and the stocks pay a $1 annual dividend per share. - How much of your initial money do you invest? How much do you borrow? - What will be the rate of return for the following stock prices at the end of one year holding period? (i) $40 (ii) $50 (iii) $60 -What is the price for margin call assuming 30% maintenance margin