Suppose that you are looking at the price of Kellogg's and you see that it is selling at $60 a share. For the first part of this question assume you buy 1000 shares using $50000 of your own money, borrowing the rest of
the purchase from your broker. The interest rate on the margin loan is 8% annually (a) What is the percentage increase in the net worth of your brokerage account if the price of Kellogg's
immediately changes to (i) $66 a share (ii) $55 a share