Business, 20.02.2020 08:46, andydiaz1227

You are bullish on Telecom stock. The current market price is $250 per share, and you have $20,000 of your own to invest. You borrow an additional $20,000 from your broker at an interest rate of 8% per year and invest $40,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes down by 7% during the next year? The stock currently pays no dividends. (Negative value should be indicated by a minus sign. Round your answer to the nearest whole number. Omit the "%" sign in your response.) Rate of return %b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Margin call will be made at price $ or lower

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You are bullish on Telecom stock. The current market price is $250 per share, and you have $20,000 o...