You are bullish on Telecom stock. The current market price is $80 per share, and you have $16,000 of your own to invest. You borrow an additional $16,000 from your broker at an interest rate of 7% per...

You are bullish on Telecom stock. The current market price is $80 per share, and you have $16,000 of your own to invest. You borrow an additional $16,000 from your broker at an interest rate of 7% per year and invest $32,000 in the stock.

What will be your rate of return if the price of Telecom stock goes down by 5% during the next year?(Negative answer should be indicated by a minus sign. Omit the "%" sign in your response.)

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.)