Percentage Increase in the Net Worth Assignment | Homework For You

Suppose that Xtel currently is selling at $74 per share. You buy 300 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 7%.

Don't use plagiarized sources. Get Your Assignment on

Just from $13/Page

Order Now

a. What is the percentage increase in the net worth of your brokerage account if the price of Xtelimmediately changes to: (i) $83.62; (ii) $74; (iii) $64.38? What is the relationship between your percentage return and the percentage change in the price of Xtel? (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 (b) change if you had financed the initial purchase with only $11,100 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 1 year at: (i) $83.62; (ii) $74; (iii) $64.38? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel pays no dividends. (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.)Get Finance homework help today

Why Choose Our Assignment Writing Services

Quality Assignment Papers

We aim at 100% customer satisfaction. As such, we never compromise on the quality of our assignment services. Our homework helpers craft each paper carefully to match the requirements on the instruction form.

Professional Homework Helpers

We receive many applications from writers around the world daily. Nevertheless, we only choose the cream of the crop to tackle your “help with homework” requests. Hence, our homework helpers are highly-qualified individuals who maintain our quality policy.

Affordable Homework Help

We maintain a fair pricing policy for all our homework help services. Our pricing system generates quotations based on the requirements of each paper.

On-Time Assignment Delivery

At My Homework Writers, we guarantee all students swift delivery of their assignments. We understand that time is an essential factor in the academic world. We, therefore, ensure that all assignments are delivered on or before the agreed deadline.

100% Original Assignment Papers

We maintain a zero-plagiarism policy in all our essay papers. Our assignment writers stick to the students’ instructions to deliver plagiarism-free papers. We are also keen to avoid any chance of similarities with previously written papers.

24/7 Customer Support

We understand that you might run into trouble once in a while when working with our system. In the event that you do run into trouble, please get in touch with our support agents and they will immediately provide you with assistance.

Feel free to contact us via the Chat window or email: support@myhomeworkwriters.com.

How myhomeworkwriters works?

Follow these simple steps to get your homework done

1). Place your order

Fill in the order form and provide all details of your assignment.

2). Proceed with the payment

Choose the payment system that suits you most.

3). Track Progress

You will be able to track the progress of your paper from our system.

4). Receive the final file

Once your paper is ready, we will email it to you.

Calculate the price of your order

Type of paper needed:

Pages:

You will get a personal manager and a discount.

Academic level:

We'll send you the first draft for approval by at

Total price:

$0.00

Our Assignment Writing Services

Myhomeworkwriters website holds a reputation for providing high-quality assignment writing services. You only need to give us all the requirements for your “do my homework” order, and our homework paper writers will give you the best results.

Essay Writing Services

We have highly qualified essay writers to assist you whenever you place in "help with my homework" order. Our essay writing service is designed to help students get good grades.

Admission Essay Writing service

Our admission essay writing help will assist you to secure a position at your desired learning institution. We will help you craft a top-notch personal statement paper. Our writers who know how to write a college admission essay will help you get the college admission you are longing for.

Editing and Proofreading

Our team of professional editors will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper possesses quality and originality.

Technical papers

My homeworkwriters harbors specialists who can handle your technical papers order. Our “write my homework” services cover all academic areas you can think of. The simplicity or complexity of the paper does not affect the quality of assignment writing services.