Fannie Mae-No Politics (FNMA)

[capitalismforever]

Here's the process.


1. $12.31b NI x 14.62 PE = $179.97b Mkt cap
2. $179.97b - $19.13b pfd's = $160.84 mkt cap attributable to commons
3. $75b recap assumption
4.$75b / $160.84 = 46.63% weight of recap
5. 100% - 46.63% = 53.37% weight value of total shares
6. 5.893b current shares out / 53.37% = 11.04b total shares required
7. $160.84b / 11.04b = $14.57 pps valuation

Point out the section you're confused on.