need help with Part D-What is the relationship between your percentage return and the percentage change in the price of Xtel? Answers to the other part of the problem below

1. Suppose that Xtel currently is selling at $30 per share. You buy 1,000 shares using $20,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.
   1. What is the percentage increase in net worth of your brokerage account if the price of Xtel immediately changes to:
      1. $35
         1. 25% (35(1000)-10000=25000. (25000-20000/20000=25%)
      2. $30
         1. 0%
      3. $25
         1. -25% (25(1000)-10000=15000 (15000-20000)/20000=-25%
   2. If the maintenance margin is 30% how low can Xtels price fall before you get a margin call?
      1. 1000*30*30%=9000. 20000-9000=11000. 11000/1000=
         1. $11 per share. $30-$11=$19 before margin call
   3. What is the rate of return on your margined position (assuming again that you invested $20,000 of your own money) if Xtel is selling after 1 year
      1. $35
         1. 21% (35000-800(from 8% interest)-10000 borrowed=24200. 24200-20000/20000=21%
      2. $30
         1. -4% (30000-800-10000=19200. 19200-20000/20000=-4%
      3. $25
         1. -29% (25000-800-10000=14200. 14200-20000/20000=-29%