Consider the following information: Stock price per shareRs 80Margin requirement50%Interest rate on margin accounts9%Maintenance margin30%Ignoring transaction costs and taxes a. Assume that an…

Consider the following information:

Stock price per shareRs 80Margin requirement50%Interest rate on margin accounts9%Maintenance margin30%Ignoring transaction costs and taxes a. Assume that an investor takes a long position without using margin. Calculate the rate of return if the stock is sold for Rs 100 per share after one year. b. Assume that an investor takes a long position using margin. i. Calculate the stock price that will trigger margin call. ii. Calculate the rate of return if the stock is sold for Rs 100 per share after one year.