You purchase 1,000 shares MSFT stock on margin at a price of $150/share. The margin rate is 5% compounded monthly. The margin loan is $40,000. You want to analyze your potential returns under three scenarios for MSFTs stock price over the next year:

i) $125/share

ii) $150/share

iii) $175/share

Fill in the table below with your responses.

Also show sample calculations how you arrived at the Margin Loan, Equity, and % Return.

	Current Value	MSFT Stock Price 1-year Later
		$125/share	$150/share	$175/share
Asset
Margin Loan
Equity
% Return