You decide to buy MSFT stock on margin at S 88, Your broker agrees with an IMR of 50% and an MMR of 30%, you expect the stock price to be volatile in the next 3 months with a potential change of 25% increase or decrease) You have the choice to put up 50%, 60% or 80%. You expect to get a DPS of $2. Your brokerage firm charges 11% interest. 1. Calculate your rate of return if you decide to buy 1,000 MSFT stocks. MSFT stock $88 Number of shares Cost of investment Without Margin Margin Margin Margin Less borrowed funds (debt) Equity Number of shares Cost of investment Less borrowed funds (debt) Equity Number of shares Cost of investment Less borrowed funds (debt) Equity Dividend Interest expenses Return on investment 2. At which stock price will you receive a margin call