RJR Nabisco Valuation

Valuing the cash flows to capital under the pre-bid plan when interest tax shields areincluded in the cash flows (millions of dollars except per share data) 1989 1990 1991 1992 1993 Cash Flows available for capital payments [a] 517 948 1399 2073 2551 Cash Interest [a] 582 662 693 690 658 Cash Flows available for capital [b] 1099 1610 2092 2763 3209 Discount Rate [c] 14.6 14.6 14.6 14.6 14.6 Cumulative discount factor [d] 0.87 0.76 0.66 0.58 0.51 0 2 4 13553 13553 13553 8008 9279 11030 Less: Assumed Debt 21561 22832 24583 Net Value 16357 17628 19379 71 77 85 Cash Flows Present Value Valuation Growth in cash flows after 1998 Present value of cash flows, 1989-98 Present Value of terminal value [e] Net Value per share [f] a=case exhibit 5 b=cash flows available for capital equal cash flows available for capital payments plus cash interest c=discount rate is computed using the CAPM, with an unlevered asset beta of 0.70, a risk-free rate of 9% and a risk premium d=the cumulative discount factor for each year is the present value of $1 received at the end of the year e=calculated as the present value in 1988 of a growing perpetuity of the 1998 cash flow available to capital f=assumes 229 million shares outstanding n the cash flows 1994 1995 1996 1997 1998 2869 3253 3617 4075 4589 594 458 410 259 -21 3463 3711 4027 4334 4568 14.6 14.6 14.6 14.6 14.6 0.44 0.39 0.34 0.29 0.26 e of 9% and a risk premium of 8% Cost of capital under the pre-bid plan using tax-adjusted discount rates (millions of dollars) Assumptions Unlevered asset beta = 0.70 Assumed debt beta = 0 Risk free rate = 9% after tax expected return [a]=5.9% risk premium = 8% Beginning of year book values Assumed debt Market Value of equity [b] value of rjr nabisco Equity beta [c] 0.98 cost of equity [d] (in %) WACC [in %] 1989 5204 12790 17994 1990 4894 14949 19843 1991 4519 17405 21924 1992 3798 20199 23997 1993 3982 23361 26343 1994 2582 26939 29521 0.98 16.9 13.7 0.94 16.5 13.8 0.89 16.1 14 0.84 15.7 14.1 0.8 15.4 14.3 0.77 15.2 14.3 a=cost of debt is assumed to be the risk free rate because the beta of the debt is assumed to be zero. The tax rate is 34% b= the market value of equity is assumed to grow at the cost of equity c= the levered equity beta (beta-e)=E/V[beta-a], where E is the market value of jr nabisco and beta-a is the unlevered asset b d=caculated using the CAPM 75 15 14.6 0.7 14. The tax rate is 34% nd beta-a is the unlevered asset beta .7 14.6 0.7 14.1995 1854 31016 32870 1996 0 35649 35649 1997 0 40853 40853 1998 0 46818 46818 0.6 o be zero.6 14.4 0.6 14.6 14. 59 0.3% Cumulative discount factor 0.45 1262.52 Present value 792.08 1491.1% 14.2 As per sheet 1070 1258 1502 1552 Valuation Growth in cash flows after 1998 0% 2% Present value of cash flows.1989-1998 12910 12910 Present value of terminal value(f) 8273 9586 Less: Assumed debt Net value Net value per share(g) Assume 229 million shares outstanding Assume a 34% tax rate equals interest in Exhibit 5 times 66% 21183 5204 15979 69.77 0.77729 22496 5204 17292 75.8% 14.68 0.7% 13.51092 .52 1552.0% 14.88 1066.Valuing the cash flows for capital under the pre bid plan using tax adjusted discount rates(millions of dollars except per sha Cash Flows 1989 1990 1991 1992 1993 Cash flows available for capital payments 517 948 1399 2073 2551 After tax cash interest 384 437 457 455 434 Cash flows available for capital© 901 1385 1856 2528 2985 WACC(d) 13.88 0. 4% 14.6% 0.6% 0.6% 0.3% 14.3 1273.8 1285 1998 4589 -14 4575 14.45 0.35 1467.4 0.ions of dollars except per share data) 1994 1995 1996 2869 3253 3617 392 302 271 3261 3555 3887 14.40611 1997 4075 171 4246 14.26 1208 .45 1483 1412 1348 4% 12910 11395 24304 5204 19100 83.45 1422 1360. 96 1482 1991 919 1286 2205 14.58 1429.7 1429 0% 23982 6427 2% 23982 7447 30408 5204 25204 110.Valuing the cash flows to capital under the managemnt group plan when interest tax sheilds are included in the cash flows Cash Flows Cash flows available for capital payments After tax cash interest Cash flows available for capital© WACC(d) Cumulative discount factor Present value Valuation Growth in cash flows after 1998 Present value of cash flows.6% 0.76 1478.7 As per sheet 12923 1990 593 1353 1946 14.6% 0.0611 31428 5204 26224 114.5153 Assume 229 million shares outstanding Assume a 34% tax rate equals interest in Exhibit 5 times 66% Cash flows available for capital©equlas Cash flows available for capital payments plus cash interest .3 1465 1992 1282 1183 2465 14.1989-1998 Present value of terminal value(f) Less: Assumed debt Net value Net value per share(g) 1989 12018 2792 14810 14.6% 0.66 1455.6% 0.87 12884. 6% 0.cluded in the cash flows(mn of dollrs exceot per share data) 1993 1594 1037 2631 14.29 966.6% 0.44 1230.34 1070.51 1341.6% 0.16 938 .26 953.39 1157.24 1234 4% 23982 8852 32833 5204 27629 120.81 1331 1994 1946 850 2796 14.6% 0.6% 0.32 1058 1997 3332 0 3332 14.6507 1995 2344 624 2968 14.52 1143 1996 2797 351 3148 14.6% 0.28 977 1998 3666 0 3666 14. 8% Interest Rate = 13 % (1989).TN-5 Capital structure for RJR Nabisco under the management group plan (millions of dollars) 1989 Bank debt Amount = $ 15000 Interest rate = 12 % 1990 Beginning Balance Interest Paydown Ending Balance 15000 1800 11708 3292 2392 395 218 3075 5204 572 310 4894 4894 538 375 4519 3000 420 0 3000 3000 420 0 3000 1373 258 0 0 1632 1632 307 0 0 1938 Assumed Debt Amount = $5204 Interest Rate = 11% Beginning Balance Interest Paydown Ending Balance Subordinated Debt Amount = $3000 Interest Rate = 14% Beginning Balance Interest Paydown Ending Balance PIK Preferred Amount = $ 1373 Beginning Balance PIK dividends Cash Dividends Paydown Ending Balance Convertible Beginning Balance PIK dividends Cash Dividends Paydown Ending Balance Amount = $ 916 Interest Rate = 18. 18.1998) 916 119 0 0 1035 1035 195 0 1229 .8% (1990 . 1998) .1991 1992 1993 1994 1995 1996 1997 1998 3075 369 198 2877 2877 345 466 2411 2411 289 1194 1217 1217 145 1217 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4519 497 721 3798 3798 418 816 2982 2982 328 400 2584 1854 204 1854 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3000 420 0 3000 3000 420 0 3000 3000 420 0 3000 3000 420 0 3000 3000 420 0 3000 2510 351 2510 0 0 0 0 0 0 0 0 0 1938 364 0 0 2303 2303 433 0 0 2736 2736 514 0 0 3259 3250 611 0 0 3861 3861 726 0 0 4587 4857 862 0 0 5162 5162 970 0 0 2801 2801 527 0 0 0 1229 231 1460 275 1735 326 2061 387 2448 460 2909 547 3455 650 4105 772 1460 1735 2061 2448 2909 3455 4105 % (1990 . 06 interest rate 0.25 after tax rate (a) 0.06 after tax rate (a) 0.07 1989 Beginning of year book values (b) Assumed debt bank debt sunordinated debt 5204 15000 3000 preferred stock convertible preferred 1373 916 market value of equity © 2500 value of RJR Nabisco Equity Beta (d) 27993 7. after tax debt rates are calculated as 66% of the CAPM determ Exhibit TN-5 Value at the beginning of the year.25 Unlevered asset Beta 0.07 Risk free rate 9% risk premium 8% Assumed debt: preferred stock beta 0 beta 0.7 after tax rate (a) 0.70% (a) (b) c Using a 34% tax rate.3 Cost of Equity (e) 67.TN-6 Cost of capital under management group plan using tax adjusted discount rates (millions of dollars) Assumptions Bank Debt Subordinate Debt: beta 0 beta 0.50% WACC(f) 11. Assumes that the market value of equity begins (d) The equity beta with positive subordinated debt and preferred stock betas is . 50% 23.80% 12.1990 1991 1992 1993 1994 1995 1996 1997 1998 4894 3292 3000 4519 3075 3000 3798 2877 3000 2982 2411 3000 2852 1217 3000 1854 0 3000 0 0 2510 0 0 0 0 1632 1035 1938 1229 2303 1460 2736 1735 3250 23061 3861 2448 4587 2909 5162 3455 2801 4105 4187 5461 6905 5830 10347 12369 14614 17108 19916 18039 19222 20343 21394 22457 23532 24620 25725 26822 2. Preferred stock expected returns are also calculated using the CAPM ket value of equity begins at the management groups equity investment of $2.9 30.40% 26.5 billion and grows at the cosqt of equity erred stock betas is .7 2.10% 16.10% 17.1 1 0.50% 12.60% s 66% of the CAPM determined rate based on the assumed beta.10% 13.40% 12.9 0.5 1.40% 15.30% 13.00% 12.90% 13.70% 12.3 1.8 1.50% 21.2 1.20% 12.30% 19.50% 18. also calculated using the CAPM e cosqt of equity . 24 1284 .1989-1998 Present value of terminal value(f) Less: Assumed debt Net value Net value per share(g) 1990 593 893 1486 12.8 1187 1991 919 849 1768 12.28 1259 1992 1282 781 2063 12.2% 0.8 1188.56 1276.63 1299.0% 0.7% Cumulative discount factor 0.9 Present value 12474.4% 0.Valuing the cash flows to capital under the managemnt group plan when tax adjusted discount rates are included in the ca Cash Flows 1989 Cash flows available for capital payments 12018 After tax cash interest 1843 Cash flows available for capital© 13861 WACC(d) 11.9 As per sheet 12411 Valuation Growth in cash flows after 1998 Present value of cash flows.71 1255.048 32955 5204 27751 121.69 1308 0% 23375 8175 2% 23375 9580 31550 5204 26346 115.1834 Assume 229 million shares outstanding Assume a 34% tax rate equals interest in Exhibit 6 times 66% Cash flows available for capital©equlas Cash flows available for capital payments plus cash interest 1993 1594 685 2279 12.5% 0. 44 1212.3% 0.1% 0.64 1220 1996 2797 232 3029 13.3 1099.rates are included in the cash flows(mn of dollrs exceot per share data) 1994 1946 561 2507 12.31 1187 1997 3332 0 3332 13.2 1151 1998 3666 0 3666 13.35 1166.8 1115 .5 1253.6% 0.5 1253 4% 23375 11568 34943 5204 29739 129.7% 0.8646 1995 2344 412 2756 12.39 1181.9% 0. 44 1403.6 4274.6% 0.Valuing the cash flows to capital under the KKR's plan when interest tax sheilds are included in the cash flows(mn of dollrs Cash Flows 1989 1990 Cash flows available for capital 3732 payments3521 After tax cash interest 2548 2103 Cash flows available for capital© 6280 5624 WACC(d) 14.6% 0.51 1685.6% Cumulative discount factor 0.6% 0.8515 1991 1414 1685 3099 14.04 1672 1994 2383 1088 3189 14.6% 0.7 a risk free rate of 9% and risk premium Assume 229 million shares outstanding Assume a 34% tax rate equals interest in Exhibit 5 times 66% Cash flows available for capital©equlas Cash flows available for capital payments plus cash interest .76 Present value 5463.41 1401 Discount rate is computed using the CAPM model with an unlevered asset beta of 0.1004 32301 5204 27097 118.58 1891.6% 0.66 2045.39 1294.1989-1998 21872 Present value of terminal value(f) 7572 Less: Assumed debt Net value Net value per share(g) 29444 5204 24240 105.16 1532 2% 21872 8774 4% 21872 10429 30646 5204 25442 111.87 0.3275 1995 2832 806 3319 14.34 2059 1992 1740 1522 3262 14.24 As per sheet 5480 4283 Valuation Growth in cash flows after 1998 0% Present value of cash flows.96 1891 1993 1983 1321 3304 14.6% 14. 34 1139.34 1283 1997 3956 21 3977 14.33 1166 1998 4319 0 4319 14.29 1153.6% 0.6% 0.6% 0.26 1122.ed in the cash flows(mn of dollrs exceot per share data) 1996 3330 487 3351 14.94 1106 free rate of 9% and risk premium of 8% . TN-9 capital structure for RJR Nabisco under KKR's Operating Plan (millions of dollars) Bank debt Amount = $ 12380 Amount = $5204 Amount = $3500 Beginning Balance Interest Paydown Ending Balance PIK Preferred Amount = $ 1373 Beginning Balance PIK dividends Cash Dividends Paydown Ending Balance Convertible Beginning Balance PIK dividends Cash Dividends Paydown Ending Balance 12380 1486 3422 8958 8958 1075 3146 5812 5204 572 310 4894 4894 538 375 4519 3500 490 0 3500 3500 490 0 3500 Interest Rate = 11% Beginning Balance Interest Paydown Ending Balance Subordinated Debt 1990 Interest rate = 12 % Beginning Balance Interest Paydown Ending Balance Assumed Debt 1989 Interest Rate = 14% Interest Rate = 15% (1989-1990).8% (1991 .1998) 2518 378 0 0 2896 2896 435 0 0 3331 . 17. 18.2%(1991-1992) 1373 206 0 0 1580 Amount = $ 2518 1580 237 0 0 1817 Interest Rate = 15 % (1989-1990). 18.1991 1992 1993 1994 1995 1996 1997 1998 5812 697 693 5119 5119 614 924 4195 5195 503 1583 2612 2612 313 1983 629 629 76 629 0 0 0 0 0 0 0 0 0 0 0 0 0 4519 497 721 3798 3798 418 816 2982 2982 328 400 2582 2582 284 400 2182 2182 240 2182 0 0 0 0 0 0 0 0 0 0 0 0 0 3500 490 0 3500 3500 490 0 3500 3500 490 0 3500 3500 490 0 3500 3500 490 21 3479 3479 487 3330 149 149 21 149 0 0 0 0 0 2129 366 0 0 2495 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3958 744 0 0 4702 4702 884 0 0 5586 5586 1050 0 0 6636 6636 1248 0 0 7883 7883 1482 0 0 9365 9365 1761 0 3806 7320 7320 1376 0 4319 4377 17.2%(1991-1992) 1817 312 0 0 2129 ).1998) 3331 626 0 0 3958 .8% (1991 . 5 4894 8958 3500 0 1580 2896 2970 24798 5.5 billio . Assumes that the market value of equity begins at KKR's equity investment of $2. after tax debt rates are calculated as 66% of the CAPM determined rate based on the assumption bet b= exhibit 9 c=value at the beginning of the year.4 11.1 98 11.70 Risk free rate = 9% Risk premium =8% Beginning of year book values [b] Assumed debt Bank debt senior subordinated debt subordinated debt converting debt preferred stock market value of equity [c] value of rjr nabisco equity beta [d] cost of equity [e] wacc [f] 1989 1990 5204 12380 3500 0 1373 2518 1500 26475 11.Cost of capital under KKR's plan using the tax-adjusted discount rates [millions of dollars] Assumptions Unlevered beta = 0.2 50.7 a=using a 34% tax rate. 07 0.8 2182 629 3500 0 0 6636 15167 28114 1.5 21.06 0.1 18 12.Beta After tax rate [a] Bank debt Sub-ordinated debt converting debt assumed debt preferred stock 0 0.3 12.5 billion and grows at the cost of equity.2 34.9 13.5 28. . Convertible debt becomes equity in 1992.3 19.7 12 2982 4195 3500 0 0 4792 10469 26848 1.25 0.06 0. KKR's equity investment of $2.5 11.5 12.07 1991 1992 1993 1994 1995 1996 4519 5812 3500 0 1817 3331 4466 23446 3.25 0 0.07 0. Preferred stock expected returns are also calculated using the CAPM.9 3798 5119 3500 0 2129 3958 6008 24512 2.1 ed rate based on the assumption beta.6 2582 2612 3500 0 0 5586 12695 26975 1.9 0 0 3479 0 0 7883 17903 29266 1 16.25 0. 4 0 0 0 0 0 7320 24324 31644 0.9 16.2 13.7 13.7 .1997 1998 0 0 149 0 0 9365 20926 30441 0.8 15. 0% 0.8 3927.7 a risk free rate of 9% and risk premium Assume 229 million shares outstanding Assume a 34% tax rate equals interest in Exhibit 5 times 66% Cash flows available for capital©equlas Cash flows available for capital payments plus cash interest .6 4854 1990 3521 1388 4909 11.7% 0.9 4872.9214 32474 5204 27270 119.35 1625 1994 2383 718 2915 12.1989-1998 Present value of terminal value(f) Less: Assumed debt Net value Net value per share(g) 1989 3732 1682 5414 11.5 1457.8 1758 1993 1983 872 2855 12.1921 Discount rate is computed using the CAPM model with an unlevered asset beta of 0.6% 0.57 1627.083 34789 5204 29585 129.Valuing the cash flows to capital under the KKR's plan using tax adjusted discount rates (mn of dollrs exceot per share data Cash Flows Cash flows available for capital payments After tax cash interest Cash flows available for capital© WACC(d) Cumulative discount factor Present value As per sheet Valuation Growth in cash flows after 1998 Present value of cash flows.8% 0.9% 0.2 3941 1991 1414 1112 2526 11.64 1756.72 1813 1992 1740 1005 2745 12.5% 0.72 1818.5 1565 0% 21206 9628 2% 21206 11268 4% 21206 13583 30834 5204 25630 111. 16 1442 e of 9% and risk premium of 8% 1997 3956 14 3970 13.89 1322 .35 1389.9% 0.5 1382 1998 4319 0 4319 13.1% 0.39 1304.31 1338.85 1503 1996 3330 321 3344 13.7% 0.45 1418.ollrs exceot per share data) 1995 2832 532 3153 12.4% 0. 5] Cash interest [exh.Summary of the values of the three different rjr nabisco plans when interest tax shields are included in the cash flows (millions of dollars except per share data) Discount rate [a] cumulative discount factor [b] 1989 14.87 1990 14.6 0.76 1991 14.5] Cash interest [exh.6 0.5] Cash flows available for capital [h] present value .66 517 582 1099 959 948 662 1610 1225 1399 693 2092 1390 12018 2792 14810 12923 593 1353 1946 1482 919 1286 2205 1465 3732 2548 6280 5480 3521 2103 5625 4283 1414 1685 3099 2059 Valuing the cash flows to capital under the pre-bid plan [interest tax shields in cash flows] Cash flows for available for capital payments[h] [exh.5] Cash interest [exh.5] Cash flows available for capital [h] present value Valuing the cash flows to capital under KKR's plan [interest tax shields in cash flows] Cash flows for available for capital payments[h] [exh.5] Cash flows available for capital [h] present value Valuing the cash flows to capital under the management group plan [interest tax shields in cash flows] Cash flows for available for capital payments[h] [exh.6 0. 29 1998 Terminal Value [c] 14.44 1995 14.6 0.6 0.1992 14.51 1994 14.6 0.6 0.58 1993 14.34 1997 14.6 0.26 2073 690 2763 1602 2551 658 3209 1624 2869 594 3463 1529 3253 458 3711 1429 3617 410 4027 1354 4075 259 4334 1271 4589 -21 4568 1169 31288 8008 1282 1183 2465 1429 1594 10387 2631 1331 1946 850 2796 1234 2344 624 2967 1143 2797 351 3149 1058 3332 0 3332 997 3666 0 3666 938 25109 6427 1740 1522 3262 1891 1983 1321 3304 1672 2383 1088 3471 1532 2832 806 3637 1401 3330 487 3817 1283 3956 21 3977 1166 4319 0 4319 1106 29584 7572 .39 1996 14.6 0.6 0. Total [d] less debt [e] equity value [f] per share [g] 21561 5204 16357 71 30408 5204 25204 110 29444 5204 24240 106 . 68 Present Value 793 1070 1259 Valuing the cash flows to capital under the management group plan (interest tax shields in WACC) Cash Flows Available for Capital Payments 12018 593 919 After tax cash interest 1843 893 849 Cash Flows Available for Capital 13861 1486 1768 WACC 11.50% 11.80% 13.70% 13.90% 0.72 1813 .71 Present Value 12411 1187 1259 Valuing the cash flows to capital under the KKR's plan (interest tax shields in WACC) Cash Flows Available for Capital Payments 3732 3521 After tax cash interest 1682 1388 Cash Flows Available for Capital 5414 4909 WACC 11.9 0.9 0.TN-13 Summary of values of the three different RJR Nabisco plans using after tax adjusted discount rates (millions of dollar 1989 1990 1991 Valuing the cash flows to capital under the prebid plan (interest tax shield in WACC) Cash Flows Available for 517 948 1399 Capital Payments (f) 384 437 457 After tax cash interest Cash Flows Available for 901 1385 1856 Capital WACC 13.77 0.70% 12.00% 12.8 Present Value 4854 3941 a b c d e f calculated as a perpetuity of the 1998 cash flows present 1414 1112 2526 11.90% Cumulative WACC 0.20% Cumulative WACC 0.70% Cumulative WACC 0.88 0.8 0. 26 1209 8283 1282 781 1594 685 1946 561 1344 412 2797 232 3332 0 3666 0 2063 12.60% 0.90% 0.90% 0.60% 0.64 1758 2855 12.39 1187 3332 13.50% 0.60% 0.3 1115 1740 1005 1983 872 2383 718 2832 532 3330 321 3956 14 4319 0 2745 12.5 1565 3364 12.45 1503 3651 13.30% 0.56 1284 2507 12.57 1625 3101 12.35 1382 4319 13.35 1349 14.46 1484 14.40% 0.63 1308 2279 12.3 1286 14.70% 0.4 1414 14.35 1151 3666 13.40% 0.80% 0.20% 0.44 1220 3029 13.60% 0.30% 0.10% 0.40% 0.52 1553 14.d discount rates (millions of dollars except pe share data) 1992 1993 1994 1995 1996 1997 a b 1998 Terminal Value Total 2073 455 2551 434 2869 392 3253 302 3671 271 4075 171 4589 -14 2528 2985 3261 3555 3942 4246 4575 31337 14.31 1322 21203 26882 8175 31550 31447 9628 30834 .60% 0.39 1442 3970 13.10% 0.00% 0.59 1502 14.10% 0.70% 0.5 1253 1756 12. c d e Less Debt Equity Value Per Share 5204 15999 70 5204 263465 115 5204 25630 112 . 6% discount rate .6% discount rate (b) Calculated using a 14.tax rates) + depriciation) Pre-bid strategy 2720 KKR's Strategy 3049 Management Group's Startegy 2042 NOTE: Data for prebid strategy are from Exhibit 5. for the management group strategy fro Exhibit 6 and for KKR's strategy fro (a) terminal values are calculated as perpetuities of the 1998 value without growth using a 14.TN-14 Selected Operating Flows Under the three different Plans 1989 1990 1991 198 936 949 225 796 460 236 679 437 Planned Capital Expenditure Pre-bid strategy KKR's Strategy Management Group's Startegy 1708 774 432 1462 556 381 1345 555 380 Net Proceeds from Asste Sales Pre-bid strategy KKR's Strategy Management Group's Startegy 0 3500 12680 0 2700 0 0 0 0 2993 3121 2299 3352 3414 2584 Interest Tax Shields (interest * tax rate) Pre-bid strategy KKR's Strategy Management Group's Startegy After-tax operating cash flows (operating profits * (1 . 6% discount rate 1998 1998 Terminal Value (a) .1992 1993 1994 1995 1996 1997 235 642 402 224 449 353 2 37 289 156 274 212 139 166 119 88 7 0 -7 0 0 0 0 0 930 572 389 738 586 396 735 598 402 735 618 412 735 636 422 735 658 432 735 678 442 5034 4644 3024 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3632 3639 2891 2924 3895 3118 4228 4162 3357 4560 4453 3621 4925 4771 3910 5326 5120 4229 5761 5501 4580 39458 37678 31367 xhibit 6 and for KKR's strategy from exhibit 7 using a 14. Present value(b) 970 2800 2130 6957 4367 2836 0 5110 11064 29385 29096 23134 .