Suppose that you sell short 500 shares of xtel, currently selling for $40 per share, and give your broker $15,000 to establish your margin account.
a. if you earn no interest on the funds in your margin account, assume that xtel pays no dividends. so what will be your rate of return after one year if xtel stock is selling at: (negative value should be indicated by a minus sign. round your answers to 2 decimal places.)
b. if the maintenance margin is 25%, how high can xtel’s price rise before you get a margin call?
c. redo parts (a) and (b), but now assume that xtel also has paid a year-end dividend of $1 per share. the prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid. (negative value should be indicated by a minus sign. round your answers to 2 decimal places.)

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?