Calo is a firm that exists in perfect capital markets, where the only imperfection is the presence of corporate taxes. There exist government bonds currently yield a rate of return 4.0% per annum compounded annually for all maturities. Like all other firms in the markets, it pays corporate taxes on its profits at a marginal rate of 36%.

After having recently completed a leveraged recapitalisation where it converted from being an all-equity firm to one that is now 71% financed by debt, shares of Calo currently trade at a price of $47.85 each. The debt was issued at par and is expected to be a permanent part fo the Calo's capital structure going forward (so that the firm will only pay interest on this debt)

Calo's annual operating income is expected to be constant for the foreseeable future.

Q: What was the price per share of Calo BEFORE its recent leveraged recapitalisation ?