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Compute the price of xyz stock

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Mr. Blight opened a margin account and bought 200 shares of stock in the XYZ Corporation at $80 per share. The initial margin was 70%. Shortly after this investment Mr. Blight received a margin call from his broker. The broker explained that Mr. Blight's new account did not meet the maintenance margin requirement of 30% because the price of XYZ stock fell right after Mr. Blight bought it. Compute the price of XYZ stock for which Mr. Blight's account violate the 30% margin requirement

Reference no: EM133000904

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