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You are bullish on stock XYZ. The current market price is Euro 45 per share, and you have Euro 28,000 of your own to invest.

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You are bullish on stock XYZ. The current market price is Euro 45 per share, and you have Euro 28,000 of your own to invest. You borrow an additional Euro 20,000 from your broker at an interest rate of 8% per year, and invest your own and the borrowed money in the stock. Holding period is one year. What is the initial percentage margin? (Round your answer to 2 decimal places.) Initial percentage margin % If the maintenance margin is 40%, at which price you will get a margin call? (Reminder: The interest does not affect that price. Round your answer to 2 decimal places.) Market price Euro Calculate your rate of return if you now assume that XYZ has paid a year-end dividend of Euro 0.90 per share and after one year the ex-dividend price per share is Euro 49.50. (Negative amount should be Indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %

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