You want to short 100 shares of Microsoft (MSFT). The market price is $70. The initial margin requirement is 50%. The maintenance margin requirement is 30%. Answer the following questions before you make an investment decision. Show steps of your calculations. (15 points)

1. The minimum amount of equity you must have in the account.

2. At what price you will get a margin call?

3. If the price of the stock increases to $85, what is the equity balance and margin ratio in the margin account? How much funds you need to deposit to meet the margin requirement?

4. If you don't have extra funds to deposit, how many shares of MSFT the broker will have to ask you to cover in order to maintain the margin account? Show the new balance sheet.