When corporations issue liabilities we assume that they do so at fair market rates. This implies that on the day the liability is issued the cash received by the company is equal in value to the debt liability that is recorded on the balance sheet. Except for the possibility of tax shield, financing creates no value. Banks and insurance companies are different because their liabilities (for example demand deposit at a bank or insurance policy reserves at an insurance company) involve services. Consequently growth of deposits and of reserves actually creates value for shareholders. How would you construct a DCF Valuation differently for:-

i. For Banks

ii. For Insurance Company