Note that the average FCFE between 1998 and 2003 remains the same at 37.54 million dollars a year when we use the approximation. The FCFE in each year is different, though, from the estimates in table 11.5, because we are smoothing out the effects of the cashflows from debt.

To estimate the FCFE for Deutsche Bank, we used the categories developed earlier for banks - net interest income, arbitrage income and advisory and fee income from providing financial advice and services to firms. To estimate the net investment made in 2003 for each source of income, and ignoring training expenses, we used the balance sheet numbers for 2002 and 2003. Table 11.7 reports these numbers.

Table 11.7: Deutsche Bank: 2002 and 2003 Financials
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