Stanley department stores reported net income of $720,000 for the year ended december 31, 2021. additional information: common shares outstanding at jan. 1, 2021 80,000 incentive stock options (vested in 2020) outstanding throughout 2021 24,000 (each option is exercisable for one common share at an exercise price of $37.50.) during the year, the market price of stanley’s common stock averaged $45 per share. on aug. 30, stanley sold 15,000 common shares. stanley’s only debt consisted of $50,000 of 10% short-term bank notes. the company’s income tax rate is 25%. required: compute stanley’s basic and diluted earnings per share for the year ended december 31, 2021

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (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 25%, 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 2 would change if you had financed the initial purchase with only $10,000 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 $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (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 xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)