(Use excel template provided )

You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker at an interest rate of 8% per year and invest $10,000 in the stock.

a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.)

b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately.

please solve according to excel sheet requirements.

A C D E F G H 1 B Buying on Margin N N 3 4 5 6 7 8 9 10 11 9. You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker at an interest rate of 8% per year and invest $10,000 in the stock. Initial Equity Investment Amount Borrowed Initial Stock Price Shares Purchased Ending Stock Price Cash Dividends During Hold Per. Initial Margin Percentage Maintenance Margin Percentage a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.) b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. 12 Rate on Margin Loan Holding Period in Months 13 14 15 0.00 16 17 18 Return on Investment Capital Gain on Stock Dividends Interest on Margin Loan Net Income Initial Investment Return on Investment 19 0.00 0.00 0.00 0.00 #DIV/0! 20 21 Return to Menu 22 23 24 Margin Call: Margin Based on Ending Price Price When Margin Call Occurs #DIV/0! #DIV/0! 25 26 27 28 Return on Stock without Margin #DIV/0