Replies to post #406976 on Fannie Mae (FNMA)

[capitalismforever]

Its not clear to me at least what final price per share will be since in part it is dependent on the number of shares issued (or inversely, for a given target pps, so many shares would be issued).

That's correct, which is why you have to make an assumption what the recap will be.

[capitalismforever]

Do you need me to lay out the resultant optimization proof? Prima facie it shouldn't be too hard. Something like Max(5billionshares*X) where X is the number of shares, subject to the constraints of the equation given, and #recapshares >0

Feel free. However, it will have little relationship to the value of the business which is the first step to assuming how many additional shares would have to be released if the company recapped at $X.