Suppose you purchased 400 shares of ABC, Inc. at a price of $180 per share, borrowing $28,000 from your broker to finance part of the purchase. This loan carries an interest rate of 10% per year. The minimum maintenance margin requirement is 30%.

a.) What is the margin in your account at the time of the purchase, both in dollar terms and as a percentage of the investment?

b.) If, one year later, the price of ABC stock is $100 per share, will you receive a margin call?

c.) If, one year later, the price of ABC stock is $200 per share, what rate of return did you earn on your investment?

d.) By what percentage did the price of ABC rise over the year?

30. (10 points) Suppose you purchased 400 shares of ABC, Inc. at a price of $180 per share, borrowing $28,000 from your broker to finance part of the purchase. This loan carries an interest rate of 10% per year. The minimum maintenance margin requirement is 30%. a. What is the margin in your account at the time of the purchase, both in dollar terms and as a percentage of the investment? b. If, one year later, the price of ABC stock is $100 per share, will you receive a margin call? c. If one year later, the price of ABC stock is $200 per share, what rate of return did you eam on your investment? d. By what percentage did the price of ABC rise over the year