QUESTION 7: You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75...

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QUESTION 7: You bought 250 shares of McWeber Inc. stock onmargin. Price paid was $75 per share. The initial margin is 60%.The maintenance margin is 25%. A. What is the initial equity pershare? (2 points) B. What is the loan amount per share? (2 points)C. How low can the price fall before there is a margin call? (2points) D. Assume the price falls to $36. What is the amount of themargin call? (3 points) E. Assume the price did notfall. Instead the price increasedto $92 and you sold the stock. During the ninemonth period in which you held thestock you received dividends of $.82 eachquarter. Assume also that the annual interest rate charged on theloan amount is 8%. What is the holding period return on yourinvested capital (i.e. your equity investment) for the 9-monthholding period? (5 points)
^{**ONLY NEEDING THE ANSWER TO PARTE!!!!!!!!!!!!!!!!}

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a Number of Shares Bought 250 Price Paid per Share 75 Total Worth of Shares bought 75 x 250 18750 Initial Margin 60 and Maintenance Margin 25 Initial See Answer

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QUESTION 7: You bought 250 shares of McWeber Inc. stock onmargin. Price paid was $75 per share. The initial margin is 60%.The maintenance margin is 25%. A. What is the initial equity pershare? (2 points) B. What is the loan amount per share? (2 points)C. How low can the price fall before there is a margin call? (2points) D. Assume the price falls to $36. What is the amount of themargin call? (3 points) E. Assume the price did notfall. Instead the price increasedto $92 and you sold the stock. During the ninemonth period in which you held thestock you received dividends of $.82 eachquarter. Assume also that the annual interest rate charged on theloan amount is 8%. What is the holding period return on yourinvested capital (i.e. your equity investment) for the 9-monthholding period? (5 points)**ONLY NEEDING THE ANSWER TO PARTE!!!!!!!!!!!!!!!!