Replies to post #793133 on Fannie Mae-No Politics (FNMA)

[Wise Man]

A Common Stock represents a legal claim on all the future EPS

Which is either distrbuted as dividend to common shares or kept by the company as Accumulated Retained Earnings account.
This is why this account is included as an item to calculate the Common Equity.

And this is why the stock valuation is calculated at X times the EPS, without analyzing what portion will be paid out or kept by the company.
What's 14 times $0.00 EPS?