You are buying stock A on margin (1,000 shares). The interest rate on the margin loan is 12% per year. At the initiation of your trade, the price is $104. Moreover, the initial margin is set to be 70%, and the maintenance margin is set to be 40%. Your investment horizon is one year. Suppose that the stock price hits zero at the end of your investment horizon. Calculate, at the end of your investment horizon:

a) Value of stock position at the end of your investment horizon

b) Payment to the broker

c) Proceeds to the investor

d) The rate of return (return on equity (ROE)).

Clearly label your findings (e.g., enterprise value = ..) and designate which part of the question you are answering such a, b, c (if there are multiple parts). Show your work by typing it in Canvas. Answers (whether correct or incorrect) without work shown will receive zero points. Simply typing your work will suffice. (e.g., x = y + 2z). No need to use mathematical functions in Canvas.