You purchase 400 shares of XYZ at $50 on an initial margin of 60%. What will be the margin and your return if the price drops to $48 or rises to $65? If the maintenance margin is 35% calculate the margin call price.

2. You purchase 4000 shares of Macrosoft @30. Initial margin is 55% and maintenance margin is 30%. Calculate (a) % margin (b) call price (c) ROE, if price increases to $35.

3. You short sell 500 shares of WXY stock at $36. The initial margin is 55%. What is the margin and your return if price rises to $45 or falls to $25. If the maintenance margin is 30% what is the call price?

4. You short sell 500 shares of IBM for $80. IM =70%, MM= 35%. If price decreases to $65 calculate % margin, ROE, and call price.

5. You buy 100 shares of Dell stock on 60% margin at $80. The broker charges 10% annual interest and commissions are 3% of total stock value on both purchase and sale. A year later you receive $2 per share dividends and sell the stock for $108. What is the return on equity?