Part 2 a 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 RJR's cash flow to grow at 5% in perpetuity. RJR's 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. B