(The following information applies to Questions 1 - 3) Suppose that Intel currently is selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. Question 1: What is your initial margin ratio? Question 2: If the maintenance margin is 25%, how low can Intel's price fall before you get a margin call? Question 3: What is the rate of return on your margined position if Intel is selling at $22 after one year? (The following information applies to Questions 4 - 7) Suppose that you sell short 500 shares of Intel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account. Assume that you earn no interest on the funds in your margin account, and the maintenance margin is 25%. Question 4: What will be your rate of return after 1 year if Intel stock is selling at $16 and paid no dividend? Question 5: How high can Intel's price rise before you get a margin call, assuming Intel paid no dividend? Question 6: Suppose Intel paid a dividend of $1 per share during your investment period. What will be your rate of return after 1 year if Intel stock is selling at $16, Intel paid a dividend of $1 per share during your investment period? Question 7: How high can Intel's price rise before you get a margin call, assuming Intel paid a dividend of $1 per share during your investment period