Valuing the cash flows to capital under the pre-bid plan when interest tax shields are included

in the cash flows

(millions of dollars except per share data)

1989 1990 1991 1992 1993
Cash Flows

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

Present Value

Valuation

Growth in cash flows after 1998 0 2 4

Present value of cash flows, 1989-98 13553 13553 13553

Present Value of terminal value [e] 8008 9279 11030

Less: Assumed Debt 21561 22832 24583

Net Value 16357 17628 19379

Net Value per share [f] 71 77 85

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 1989 1990 1991 1992 1993 1994
Assumed debt 5204 4894 4519 3798 3982 2582
Market Value of equity [b] 12790 14949 17405 20199 23361 26939
value of rjr nabisco 17994 19843 21924 23997 26343 29521

Equity beta [c] 0.98 0.98 0.94 0.89 0.84 0.8 0.77
cost of equity [d] (in %) 16.9 16.5 16.1 15.7 15.4 15.2
WACC [in %] 13.7 13.8 14 14.1 14.3 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
 1995 1996 1997 1998
1854 0 0 0
31016 35649 40853 46818
32870 35649 40853 46818

0.75 0.7 0.7 0.7

15 14.6 14.6 14.6
14.4 14.6 14.6 14.6

o be zero. The tax rate is 34%

nd beta-a is the unlevered asset beta

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) 13.7% 13.8% 14.0% 14.1% 14.3%
Cumulative discount factor 0.88 0.77 0.68 0.59 0.52
Present value 792.88 1066.45 1262.08 1491.52 1552.2
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

21183 22496
Less: Assumed debt 5204 5204
Net value 15979 17292
Net value per share(g) 69.77729 75.51092

Assume 229 million shares outstanding

Assume a 34% tax rate equals interest in Exhibit 5 times 66%
ions of dollars except per share data)
1994 1995 1996 1997 1998
2869 3253 3617 4075 4589
392 302 271 171 -14
3261 3555 3887 4246 4575
14.3% 14.4% 14.6% 14.6% 14.6%
0.45 0.4 0.35 0.3 0.26
1467.45 1422 1360.45 1273.8
1483 1412 1348 1285 1208

4%
12910
11395

24304
5204
19100
83.40611
Valuing the cash flows to capital under the managemnt group plan when interest tax sheilds are included in the cash flows

Cash Flows 1989 1990 1991 1992

Cash flows available for capital payments 12018 593 919 1282
After tax cash interest 2792 1353 1286 1183
Cash flows available for capital© 14810 1946 2205 2465
WACC(d) 14.6% 14.6% 14.6% 14.6%
Cumulative discount factor 0.87 0.76 0.66 0.58
Present value 12884.7 1478.96 1455.3 1429.7
As per sheet 12923 1482 1465 1429
Valuation
Growth in cash flows after 1998 0% 2%
Present value of cash flows,1989-1998 23982 23982
Present value of terminal value(f) 6427 7447

30408 31428
Less: Assumed debt 5204 5204
Net value 25204 26224
Net value per share(g) 110.0611 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
cluded in the cash flows(mn of dollrs exceot per share data)

1993 1994 1995 1996 1997 1998

1594 1946 2344 2797 3332 3666
1037 850 624 351 0 0
2631 2796 2968 3148 3332 3666
14.6% 14.6% 14.6% 14.6% 14.6% 14.6%
0.51 0.44 0.39 0.34 0.29 0.26
1341.81 1230.24 1157.52 1070.32 966.28 953.16
1331 1234 1143 1058 977 938

4%
23982
8852

32833
5204
27629
120.6507
TN-5 Capital structure for RJR Nabisco under the management group plan (millions of dollars)
1989 1990
Bank debt Amount = $ 15000 Interest rate = 12 %

Beginning Balance 15000 2392

Interest 1800 395
Paydown 11708 218
Ending Balance 3292 3075

Assumed Debt Amount = $5204 Interest Rate = 11%

Beginning Balance 5204 4894

Interest 572 538
Paydown 310 375
Ending Balance 4894 4519

Subordinated Debt Amount = $3000 Interest Rate = 14%

Beginning Balance 3000 3000

Interest 420 420
Paydown 0 0
Ending Balance 3000 3000

PIK Preferred Amount = $ 1373 Interest Rate = 18.8%

Beginning Balance 1373 1632

PIK dividends 258 307
Cash Dividends 0 0
Paydown 0 0
Ending Balance 1632 1938

Convertible Amount = $ 916 Interest Rate = 13 % (1989), 18.8% (1990 - 1998)

Beginning Balance 916 1035

PIK dividends 119 195
Cash Dividends 0 0
Paydown 0
Ending Balance 1035 1229
 1991 1992 1993 1994 1995 1996 1997 1998

3075 2877 2411 1217 0 0 0 0

369 345 289 145 0 0 0 0
198 466 1194 1217 0 0 0 0
2877 2411 1217 0 0 0 0 0

4519 3798 2982 1854 0 0 0 0

497 418 328 204 0 0 0 0
721 816 400 1854 0 0 0 0
3798 2982 2584 0 0 0 0 0

3000 3000 3000 3000 3000 2510 0 0

420 420 420 420 420 351 0 0
0 0 0 0 0 2510 0 0
3000 3000 3000 3000 3000 0 0 0

1938 2303 2736 3250 3861 4857 5162 2801

364 433 514 611 726 862 970 527
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
2303 2736 3259 3861 4587 5162 2801 0

% (1990 - 1998)

1229 1460 1735 2061 2448 2909 3455 4105

231 275 326 387 460 547 650 772

1460 1735 2061 2448 2909 3455 4105

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 0.25
Unlevered asset Beta 0.7 after tax rate (a) 0.06 after tax rate (a) 0.07
Risk free rate 9%
risk premium 8%
Assumed debt: preferred stock
beta 0 beta 0.25
after tax rate (a) 0.06 interest rate 0.07

1989
Beginning of year book values (b)

Assumed debt 5204

bank debt 15000
sunordinated debt 3000

preferred stock 1373

convertible preferred 916

market value of equity © 2500

value of RJR Nabisco 27993

Equity Beta (d) 7.3

Cost of Equity (e) 67.50%

WACC(f) 11.70%

(a) Using a 34% tax rate, after tax debt rates are calculated as 66% of the CAPM determ
(b) Exhibit TN-5
c Value at the beginning of the year. Assumes that the market value of equity begins

(d) The equity beta with positive subordinated debt and preferred stock betas is
 1990 1991 1992 1993 1994 1995 1996 1997 1998

4894 4519 3798 2982 2852 1854 0 0 0

3292 3075 2877 2411 1217 0 0 0 0
3000 3000 3000 3000 3000 3000 2510

1632 1938 2303 2736 3250 3861 4587 5162 2801

1035 1229 1460 1735 23061 2448 2909 3455 4105

4187 5461 6905 5830 10347 12369 14614 17108 19916

18039 19222 20343 21394 22457 23532 24620 25725 26822

2.7 2.2 1.8 1.5 1.3 1.1 1 0.9 0.9

30.40% 26.50% 23.50% 21.30% 19.50% 18.10% 17.10% 16.40% 15.80%

12.00% 12.20% 12.40% 12.50% 12.70% 12.90% 13.10% 13.30% 13.60%

s 66% of the CAPM determined rate based on the assumed beta. Preferred stock expected returns are also calculated using the CAPM

ket value of equity begins at the management groups equity investment of $2.5 billion and grows at the cosqt of equity

erred stock betas is

also calculated using the CAPM

e cosqt of equity
Valuing the cash flows to capital under the managemnt group plan when tax adjusted discount rates are included in the ca

Cash Flows 1989 1990 1991 1992 1993

Cash flows available for capital payments 12018 593 919 1282 1594
After tax cash interest 1843 893 849 781 685
Cash flows available for capital© 13861 1486 1768 2063 2279
WACC(d) 11.7% 12.0% 12.2% 12.4% 12.5%
Cumulative discount factor 0.9 0.8 0.71 0.63 0.56
Present value 12474.9 1188.8 1255.28 1299.69 1276.24
As per sheet 12411 1187 1259 1308 1284
Valuation
Growth in cash flows after 1998 0% 2%
Present value of cash flows,1989-1998 23375 23375
Present value of terminal value(f) 8175 9580

31550 32955
Less: Assumed debt 5204 5204
Net value 26346 27751
Net value per share(g) 115.048 121.1834

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
rates are included in the cash flows(mn of dollrs exceot per share data)

1994 1995 1996 1997 1998

1946 2344 2797 3332 3666
561 412 232 0 0
2507 2756 3029 3332 3666
12.7% 12.9% 13.1% 13.3% 13.6%
0.5 0.44 0.39 0.35 0.3
1253.5 1212.64 1181.31 1166.2 1099.8
1253 1220 1187 1151 1115

4%
23375
11568

34943
5204
29739
129.8646
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 1991 1992 1993 1994 1995

Cash flows available for capital
3732
payments3521 1414 1740 1983 2383 2832
After tax cash interest 2548 2103 1685 1522 1321 1088 806
Cash flows available for capital©
6280 5624 3099 3262 3304 3189 3319
WACC(d) 14.6% 14.6% 14.6% 14.6% 14.6% 14.6% 14.6%
Cumulative discount factor 0.87 0.76 0.66 0.58 0.51 0.44 0.39
Present value 5463.6 4274.24 2045.34 1891.96 1685.04 1403.16 1294.41
As per sheet 5480 4283 2059 1891 1672 1532 1401
Valuation
Growth in cash flows after 1998 0% 2% 4%
Present value of cash flows,1989-1998 21872 21872 21872
Present value of terminal value(f) 7572 8774 10429

29444 30646 32301

Less: Assumed debt 5204 5204 5204
Net value 24240 25442 27097
Net value per share(g) 105.8515 111.1004 118.3275

Discount rate is computed using the CAPM model with an unlevered asset beta of 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
ed in the cash flows(mn of dollrs exceot per share data)

1996 1997 1998

3330 3956 4319
487 21 0
3351 3977 4319
14.6% 14.6% 14.6%
0.34 0.29 0.26
1139.34 1153.33 1122.94
1283 1166 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)
1989 1990
Bank debt Amount = $ 12380 Interest rate = 12 %

Beginning Balance 12380 8958

Interest 1486 1075
Paydown 3422 3146
Ending Balance 8958 5812

Assumed Debt Amount = $5204 Interest Rate = 11%

Beginning Balance 5204 4894

Interest 572 538
Paydown 310 375
Ending Balance 4894 4519

Subordinated Debt Amount = $3500 Interest Rate = 14%

Beginning Balance 3500 3500

Interest 490 490
Paydown 0 0
Ending Balance 3500 3500

PIK Preferred Amount = $ 1373 Interest Rate = 15% (1989-1990), 17.2%(1991-1992)

Beginning Balance 1373 1580

PIK dividends 206 237
Cash Dividends 0 0
Paydown 0 0
Ending Balance 1580 1817

Convertible Amount = $ 2518 Interest Rate = 15 % (1989-1990), 18.8% (1991 - 1998)

Beginning Balance 2518 2896

PIK dividends 378 435
Cash Dividends 0 0
Paydown 0 0
Ending Balance 2896 3331
 1991 1992 1993 1994 1995 1996 1997 1998

5812 5119 5195 2612 629 0 0 0

697 614 503 313 76 0 0 0
693 924 1583 1983 629 0 0 0
5119 4195 2612 629 0 0 0 0

4519 3798 2982 2582 2182 0 0 0

497 418 328 284 240 0 0 0
721 816 400 400 2182 0 0 0
3798 2982 2582 2182 0 0 0 0

3500 3500 3500 3500 3500 3479 149 0

490 490 490 490 490 487 21 0
0 0 0 0 21 3330 149 0
3500 3500 3500 3500 3479 149 0 0

17.2%(1991-1992)

1817 2129 0 0 0 0 0 0
312 366 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
2129 2495 0 0 0 0 0 0

), 18.8% (1991 - 1998)

3331 3958 4702 5586 6636 7883 9365 7320

626 744 884 1050 1248 1482 1761 1376
0 0 0 0 0 0 0 0
0 0 0 0 0 0 3806 4319
3958 4702 5586 6636 7883 9365 7320 4377
Cost of capital under KKR's plan using the tax-adjusted discount rates [millions of dollars]

Assumptions

Unlevered beta = 0.70

Risk free rate = 9%
Risk premium =8%

Beginning of year book values [b] 1989 1990

Assumed debt 5204 4894

Bank debt 12380 8958
senior subordinated debt 3500 3500
subordinated debt 0 0
converting debt 1373 1580
preferred stock 2518 2896
market value of equity [c] 1500 2970
value of rjr nabisco 26475 24798
equity beta [d] 11.1 5.2
cost of equity [e] 98 50.4
wacc [f] 11.5 11.7

a=using a 34% tax rate, 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. Assumes that the market value of equity begins at KKR's equity investment of $2.5 billio
 Bank debt Sub-ordinated debt converting debt assumed debt preferred stock
Beta 0 0.25 0.25 0 0.25
After tax rate [a] 0.06 0.07 0.07 0.06 0.07

1991 1992 1993 1994 1995 1996

4519 3798 2982 2582 2182 0

5812 5119 4195 2612 629 0
3500 3500 3500 3500 3500 3479
0 0 0 0 0 0
1817 2129 0 0 0 0
3331 3958 4792 5586 6636 7883
4466 6008 10469 12695 15167 17903
23446 24512 26848 26975 28114 29266
3.2 2.5 1.5 1.3 1.1 1
34.5 28.7 21.3 19.5 18 16.9
11.9 12 12.6 12.8 12.9 13.1

ed rate based on the assumption beta. Preferred stock expected returns are also calculated using the CAPM.

KKR's equity investment of $2.5 billion and grows at the cost of equity. Convertible debt becomes equity in 1992.
 1997 1998

0 0
0 0
149 0
0 0
0 0
9365 7320
20926 24324
30441 31644
0.9 0.8
16.2 15.7
13.4 13.7
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 1989 1990 1991 1992 1993 1994

Cash flows available for capital payments 3732 3521 1414 1740 1983 2383
After tax cash interest 1682 1388 1112 1005 872 718
Cash flows available for capital© 5414 4909 2526 2745 2855 2915
WACC(d) 11.5% 11.7% 11.9% 12.0% 12.6% 12.8%
Cumulative discount factor 0.9 0.8 0.72 0.64 0.57 0.5
Present value 4872.6 3927.2 1818.72 1756.8 1627.35 1457.5
As per sheet 4854 3941 1813 1758 1625 1565
Valuation
Growth in cash flows after 1998 0% 2% 4%
Present value of cash flows,1989-1998 21206 21206 21206
Present value of terminal value(f) 9628 11268 13583

30834 32474 34789

Less: Assumed debt 5204 5204 5204
Net value 25630 27270 29585
Net value per share(g) 111.9214 119.083 129.1921

Discount rate is computed using the CAPM model with an unlevered asset beta of 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
ollrs exceot per share data)

1995 1996 1997 1998

2832 3330 3956 4319
532 321 14 0
3153 3344 3970 4319
12.9% 13.1% 13.4% 13.7%
0.45 0.39 0.35 0.31
1418.85 1304.16 1389.5 1338.89
1503 1442 1382 1322

e of 9% and risk premium of 8%

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)
1989 1990 1991
Discount rate [a] 14.6 14.6 14.6
cumulative discount factor [b] 0.87 0.76 0.66

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] 517 948 1399
Cash interest [exh.5] 582 662 693
Cash flows available for capital [h] 1099 1610 2092
present value 959 1225 1390

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.5] 12018 593 919
Cash interest [exh.5] 2792 1353 1286
Cash flows available for capital [h] 14810 1946 2205
present value 12923 1482 1465

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] 3732 3521 1414
Cash interest [exh.5] 2548 2103 1685
Cash flows available for capital [h] 6280 5625 3099
present value 5480 4283 2059
1992 1993 1994 1995 1996 1997 1998 Terminal Value [c]
14.6 14.6 14.6 14.6 14.6 14.6 14.6
0.58 0.51 0.44 0.39 0.34 0.29 0.26

2073 2551 2869 3253 3617 4075 4589

690 658 594 458 410 259 -21
2763 3209 3463 3711 4027 4334 4568 31288
1602 1624 1529 1429 1354 1271 1169 8008

1282 1594 1946 2344 2797 3332 3666

1183 10387 850 624 351 0 0
2465 2631 2796 2967 3149 3332 3666 25109
1429 1331 1234 1143 1058 997 938 6427

1740 1983 2383 2832 3330 3956 4319

1522 1321 1088 806 487 21 0
3262 3304 3471 3637 3817 3977 4319 29584
1891 1672 1532 1401 1283 1166 1106 7572
Total [d] less debt [e] equity value [f] per share [g]

21561 5204 16357 71

30408 5204 25204 110

29444 5204 24240 106

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 13.70% 13.80% 13.90%
Cumulative WACC 0.88 0.77 0.68
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 11.70% 12.00% 12.20%
Cumulative WACC 0.9 0.8 0.71
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 1414
After tax cash interest 1682 1388 1112
Cash Flows Available for
Capital 5414 4909 2526
WACC 11.50% 11.70% 11.90%
Cumulative WACC 0.9 0.8 0.72
Present Value 4854 3941 1813

a calculated as a perpetuity of the 1998 cash flows

b present
c
d
e
f
d discount rates (millions of dollars except pe share data) a b
1992 1993 1994 1995 1996 1997 1998 Terminal Value
Total

2073 2551 2869 3253 3671 4075 4589

455 434 392 302 271 171 -14

2528 2985 3261 3555 3942 4246 4575 31337

14.10% 14.20% 14.30% 14.40% 14.60% 14.60% 14.60%

0.59 0.52 0.46 0.4 0.35 0.3 0.26
1502 1553 1484 1414 1349 1286 1209 8283 21203

1282 1594 1946 1344 2797 3332 3666

781 685 561 412 232 0 0

2063 2279 2507 1756 3029 3332 3666 26882

12.40% 12.50% 12.70% 12.90% 13.10% 13.30% 13.60%
0.63 0.56 0.5 0.44 0.39 0.35 0.3
1308 1284 1253 1220 1187 1151 1115 8175 31550

1740 1983 2383 2832 3330 3956 4319

1005 872 718 532 321 14 0

2745 2855 3101 3364 3651 3970 4319 31447

12.00% 12.60% 12.80% 12.90% 13.10% 13.40% 13.70%
0.64 0.57 0.5 0.45 0.39 0.35 0.31
1758 1625 1565 1503 1442 1382 1322 9628 30834
c d e
Less Debt Equity Value
Per Share

5204 15999 70

5204 263465 115

5204 25630 112

TN-14 Selected Operating Flows Under the three different Plans

1989 1990 1991

Interest Tax Shields (interest * tax rate)
Pre-bid strategy 198 225 236
KKR's Strategy 936 796 679
Management Group's Startegy 949 460 437

Planned Capital Expenditure

Pre-bid strategy 1708 1462 1345
KKR's Strategy 774 556 555
Management Group's Startegy 432 381 380

Net Proceeds from Asste Sales

Pre-bid strategy 0 0 0
KKR's Strategy 3500 2700 0
Management Group's Startegy 12680 0 0

After-tax operating cash flows (operating profits * (1 - tax rates) + depriciation)

Pre-bid strategy 2720 2993 3352
KKR's Strategy 3049 3121 3414
Management Group's Startegy 2042 2299 2584

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 14.6% discount rate
(b) Calculated using a 14.6% discount rate
 1992 1993 1994 1995 1996 1997 1998 1998 Terminal Value (a)

235 224 2 156 139 88 -7 0

642 449 37 274 166 7 0 0
402 353 289 212 119 0 0 0

930 738 735 735 735 735 735 5034

572 586 598 618 636 658 678 4644
389 396 402 412 422 432 442 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 2924 4228 4560 4925 5326 5761 39458

3639 3895 4162 4453 4771 5120 5501 37678
2891 3118 3357 3621 3910 4229 4580 31367

xhibit 6 and for KKR's strategy from exhibit 7

using a 14.6% discount rate
Present value(b)

970
2800
2130

6957
4367
2836

0
5110
11064

29385
29096
23134