Let's take a look at valuing a bank using a similar methodology to the discounted cashflow valuation that you would use for a corporation. However, things are different for a bank and we have to use a methodology called the dividend discount model. We can't do a standard discounted cashflow statement for banks because they can't pay out all their cash flows. They have a regulatory minimum of shareholders' equity that they must keep on their balance sheet. So banks can't pay out dividends unless they meet these capital requirements. In fact, the capital requirements banks usually want to have, can be in excess of the regulatory minimums. So we calculate the maximum dividends that we think the bank can pay out based on an assumed capital ratio. And then once we've got these available dividends over and above the equity capital requirements, only then can we discount them back, and then that will give us the equity value. So in summary, we start with the beginning capital in a particular year, and then we'll add in the net income. Once we've done that we'll establish the ending capital that we want to have based on a capital ratio multiplied by the forecasted risk weighted assets. And only then can we establish the available dividends that we can discount back to today and we'll discount those dividends using the cost of equity, not the weighted average cost of capital to give us the equity value.