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You are bullish on Telecom stock. The current market price is $400 per share, and you have $25,000 of your own to invest. You borrow

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You are bullish on Telecom stock. The current market price is $400 per share, and you have $25,000 of your own to invest. You borrow an additional $25,000 from your broker at an interest rate of 7% per year and invest $50,000 in the stock. Required: a. What will be your rate of return if the price of Telecom stock goes up by 6% during the next year? The stock currently pays no dividends. 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. Complete this question by entering your answers in the tabs below. What will be your rate of return if the price of Telecom stock goes up by 6% during the next year? The stock currently pays no dividends. Note: Negative value should be indicated by a minus sign. Enter your answer as a percent rounded to the nearest whole number

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