Question: please shoe each step and include all formulas. thank you! Suppose that X Tel currently is selling at $50 per share. You buy 700 shares

please shoe each step and include all formulas. thank you!

please shoe each step and include all formulas. thank you! Suppose thatX Tel currently is selling at $50 per share. You buy 700

Suppose that X Tel currently is selling at $50 per share. You buy 700 shares using $28,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 9%. Required: a. What is the percentage increase in the net worth of your brokerage account if the price of Tel immediately changes to (i) $56; (ii) $50; (ii) $44 ? (Leave no cells blank - be certain to enter " 0 " wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 20%, how low can XTel's price fall before you get a margin call? (Round your answer to 2 decimal places.) c. How would your answer to requirement b would change if you had financed the initial purchase with only $17,500 of your own money? (Round your answer to 2 decimal places.) d. What is the rate of return on your margined position (assuming again that you invest $28,000 of your own money) if X Tel is selling after one year at (i) \$56; (ii) \$50; (iii) \$44? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) e. Continue to assume that a year has passed. How low can X Tel's price fall before you get a margin call? Note: Assume maintenance margin of 20% (Round your answer to 2 decimal places.)

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