5. Assume that RJR-Nabisco has pre-tax cash flows of $5 billion per year, with no growth expected in the future. In addition, the firm is subject to a 35% corporate tax rate, and KKR has determined that an appropriate discount rate for the firm is 18%. What is the maximum amount that KKR should have bid for RJR-Nabisco

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.