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You short 1 0 0 shares of TEMA stock when it is selling at $ 1 0 0 . Your broker for this transaction imposes

You short 100 shares of TEMA stock when it is selling at $100. Your broker for this transaction imposes an initial margin requirement is 100%. You have cash to put down only 60% of the short sale value. Your broker lets you borrow the remaining 40% due to past relationship between the two firms. The commission on the sale is 0.5% of transaction amount. Your brokers maintenance margin is 25%.
(a) At what price of stock will you receive a margin call from your broker?
(b) TEMA shares rose to as much as$130 per share due to a good news announced by management. How much additional money must you deposit to bring the current margin to your brokers maintenance margin?
(c) You decide to buy back shares at $90 to cover your short position at the end of one year. What is the ROIC for this transaction? You pay a commission of 0.5% again on closing. While you are short, TEMA paid a $0.5 per share dividend. Your broker charges a 10 percent interest rate.
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