Question: The current market price is $ 2 5 0 per share, and you have $ 2 2 , 0 0 0 of your own to

The current market price is $250 per share, and you have
$22,000 of your own to invest. You borrow an additional $22,000
from your broker at an interest rate of 6% per year and invest
$44,000 in the stock. a. What will be your rate of return if the
price of Telecom stock goes down by 8% during the next year? The
stock currently pays no dividends. (Negative value should be
indicated by a minus sign. Round your answer to the nearest whole
number. Omit the "%" sign in your response.) Rate of return % b.
How far does the price of Telecom stock have to fall for you to get
a margin call if the maintenance margin is 30%? Assume the price
fall happens immediately. (Round your answer to 2 decimal places.
Omit the "$" sign in your response.

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