Suppose you purchase 1000 shares of Disney stock at $90 per share using margin. Your broker requires an initial cash investment of 60%.

A. If your broker requires a 40% maintenance margin, at what share price will you be subject to a margin call? Show all work.

B. If a margin call does occur, what alternatives do you have?

C. At the end of the year, suppose that the price per share of Disney is $86 and that Disney issued a dividend of $3 per share. Also, suppose that any interest charged on borrowed funds for one year is 10%. Calculate the return on your investment.

"Be sure to show all work"