Officials of the town of sunnyville were concerned about the number of dogs running loose. they set up a new administrative agency called “dog control.” the new agency issued a regulation that all dogs must be on leash in public. tony who had moved to sunnyville in the previous month did not own a dog and had no plans to get one. he, however, thought the regulation was outrageous and decided to sue on the basis that it was not validly enacted. mona, another resident, was also concerned about the law. she rents a home with a fence in the backyard that was in public view. she was concerned that the regulation would be applied to her dogs while in the fenced area. she decided to bring a preemptive strike and sue the city for revocation of the regulation before the city could sue her. both tony and mona rush to file suit before the city has a chance to take any action to enforce the new rule. of the following arguments, which is the best for the city to raise in the lawsuit brought by mona?

Suppose that xtel currently is selling at $40 per share. you buy 500 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 (a) $44; (b) $40; (c) $36? (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 requirement 2 would change if you had financed the initial purchase with only $10,000 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 one year at (a) $44; (b) $40; (c) $36? (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.)