Fannie Mae (FNMA)

[Fully Diluted]

Kthomp19,

Why think so complicated? It is quite simple.

That leaves at least $60B to make up in two years.

If we have to raise $60B in 2 years by issuing shares, then everything is fine. Because the 2 companies together have a value of about 300 billion dollars when they are recapitalized. That corresponds to a conservative P/E ratio of 15. So all outstanding shares, with or without the 2 warrants, have a value of 240 billion dollars.

How many shares are outstanding? 1,8B
With Warrants: 9B
What is the value of the JPS? approx. 32B?
What's PPS? In this case: 208B/9B = $23,11
Now you have your $20+