Analysts expect RJR Nabisco to generate free cash flow of $1.15 billion at the end of 1988. Assume that cash flows occur on December 31 and today is January 1, 1988. Analysts expect RJRs cash flow to grow at 5% in perpetuity. RJR has a capital structure policy of maintaining its debt at 20% its value and it is committed to maintaining that ratio in perpetuity. The required return of shareholders is 12.5% and the required return of lenders is 10%. The tax rate is 40%. There are 250.612 million shares outstanding. Use this information to answer the following questions.

What is the price of an RJR share? Round your answer to the nearest cent.

In November of 1988, KKR, an investment firm, won a bidding war to buy all of the shares (250.612 million) of RJR Nabisco for $108 per share. RJR shares had been trading for $55 prior to the buyout. The purchase was debt financed ($27.06609 billion). The new debt was added to the $3.70968 billion of debt that predated the buyout. The new debt resulted in a debt-to-value ratio of 83.467% which RJR was committed to maintaining in perpetuity. Analysts expected RJR to generate free cash flow of $1.35 billion at the end of 1989. Assume that cash flows occur on December 31 and today is January 1, 1989. Analysts expected RJRs cash flow to grow at 5% in perpetuity. RJRs cost of debt was 10% and its cost of unlevered equity was 12%. The tax rate was 40%.

What was the value of KKRs equity in the company after the buyout (on January 1, 1989)? Express your answer in billions of dollars rounded to one decimal place.