Fannie Mae-No Politics (FNMA)

[capitalismforever]

If the company is forced to recap using the same amount they borrowed ($117b), which is highly likely in my opinion:

$12.31b NI x 14.62 PE = $179.97b Mkt cap
$179.97b - $19.13b pfd's = $160.84 mkt cap attributable to commons
$117b recap assumption
$117b / $160.84 = 72.74% weight of recap
100% - 72.74% = 27.26% weight value of total shares
5.893b current shares out / 27.26% = 21.62b total shares required
$160.84b / 21.62b = $7.44 pps valuation

Beats pulling a number out of thin air.