Suppose that xtel currently is selling at $20 per share. you buy 1,000 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: (i) $22; (ii) $20; (iii) $18? what is the relationship between your percentage return and the percentage change in the price of xtel?

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?