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

The rate of return on the investment if the price fall by 7% next year is -22% which is shown below.

The price of Telecom would have to fall by $71.43($250-$178.57), before a margin call could be placed.

Lastly,if the price fall immediately,the margin price would $178.57 as shown below

Explanation:

Total shares bought=$40000/$250=160 shares

Interest on amount borrowed=8%*$20000=$1600

When the price falls by 7% the new price =$250(1-0.07)=$232.50

Hence rate of return=(New price*number of shares-Interest-total investment)/initial investor's funds

=($232.50*160-$40000-$1600)/$20000=-22%

Initial margin=investor's money/total investment=$20000/$40000=50%

maintenance  margin=30%

Margin call price=Current price x (1- initial margin)/ (1- maintenance margin)

                           =$250*(1-0.5)/(1-0.3)

                           =$178.57

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'