Business, 20.09.2020 17:01 girly37

ou are bullish on Telecom stock. The current market price is $100 per share, and you have $17,000 of your own to invest. You borrow an additional $17,000 from your broker at an interest rate of 6% per year and invest $34,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes down by 6% during the next year? The stock currently pays no dividends. (Negative value should be indicated by a minus sign. Enter your answer as a percent rounded to the nearest whole number.) 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.)

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ou are bullish on Telecom stock. The current market price is $100 per share, and you have $17,000 of...

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