1. You have $40,000 to invest in Sophie Shoes, a stock selling for $80 a share. The initial margin requirement is 60 percent. Ignoring taxes and commissions, show in detail the im- pact on your rate of return if the stock rises to $100 a share and if it declines to $40 a share assuming: (a) you pay cash for the stock, and (b) you buy it using maximum leverage.
2. Lauren has a margin account and deposits $50,000. Assume the prevailing margin require- ment is 40 percent, commissions are ignored, and the Gentry Wine Corporation is selling at $35 per share. a. How many shares can Lauren purchase using the maximum allowable margin? b. What is Laurens profit (loss) if the price of Gentrys stock i. rises to $45? ii. falls to $25? c. If the maintenance margin is 30 percent, to what price can Gentry Wine fall before Lauren will receive a margin call?
3. Suppose you buy a round lot of Francesca Industries stock on 55 percent margin when the stock is selling at $20 a share. The broker charges a 10 percent annual interest rate, and commissions are 3 percent of the stock value on the purchase and sale. A year later you receive a $0.50 per share dividend and sell the stock for $27 a share. What is your rate of return on Francesca Industries?
4. You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56. Your broker tells you that your margin requirement is 45 percent and that the commission on the purchase is $155. While you are short the stock, Charlotte pays a $2.50 per share dividend. At the end of one year, you buy 100 shares of Charlotte at $45 to close out your position and are charged a commission of $145 and 8 percent interest on the money borrowed. What is your rate of return on the investment?

here are 4 questions and i need solutions of them. thank you in advance.