the buyout, raising annual interest costs to more than $3 billion. Table 4.2 presents the projected interest expense and tax shields for the transaction TABLE 4.2 Projected Interest Expenses and Tax Shields(in Millions) 1989 1990 1993 Interest $3,384 3.004 $3.1ll 3.294 3483 Other relevant financial data needed for the valuation are presented in Table 4.3 TaBLE 4.3 Other relevant data needed for the valuation of rjr KKRs required return on assets ro Pretax average cost of debt rB 13.5 Assumed debt to equity ratio for RJR after 1993 Assumed constant growth rate of UCF from RR after 1993 Number of shares outstandin 229 million Now, with the data given in the Table4 1-43 as well as your wise mind, What's your opinion about KKR's bidding offer of $109 a share for RR? Is it a fair one?the buyout, raising annual interest costs to more than $3 billion. Table 4.2 presents the projected interest expense and tax shields for the transaction. TABLE 4.2 Projected Interest Expenses and Tax Shields (in $millions) 1989 1990 1991 1992 1993 Interest expenses $3,384 $3,004 $3,111 $3,294 $3,483 Other relevant financial data needed for the valuation are presented in Table 4.3. TABLE 4.3 Other relevant data needed for the valuation of RJR KKR’s required return on assets r0 14% Pretax average cost of debt rB 13.5% Assumed debt to equity ratio for RJR after 1993 1:3 Assumed constant growth rate of UCF from RJR after 1993 3% Number of shares outstanding 229 million Now, with the data given in the Table4.1-4.3 as well as your wise mind, What’s your opinion about KKR’s bidding offer of $109 a share for RJR? Is it a fair one?