Margin Call Question... investor, question, equation, guess

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Using the equation to find the margin call price:

[(P)*(1 - Margin %)] / (1 - maintenance margin %)

Why do I plug in .555 for the margin % instead of .444 when the data is:

An investor opens a margin account with an initial deposit of $5,000. He then
purchases 300 shares of a stock at $30. His margin account has a maintenance
margin requirement of 30%.

I guess my question is: Why is the margin % 5000/9000 rather than 4000/9000??



Edited 5 time(s). Last edit at Friday, December 3, 2010 at 04:48PM by mnieman.