entre.py

from financials import valuation
import financials

requested_investment = 5e6
projected_sales_y7 = 20e6

projected_PE = 15

MARR = .5
shares = 5e5



# We don't have enough information to calculate an NPV
# We need to determine the margin
# source:
# http://www.cardiovascularbusiness.com/topics/structural-congenital-heart-disease/demanding-financial-value-valve-programs

avgPrice = 62040.0
avgCost = 43733.0

contribution_margin = (avgPrice-avgCost)/avgPrice
projected_earnings_y7 = projected_sales_y7*contribution_margin

# Based on the informations we have, we can determine the projected value
# of the company on year 7
projected_valuation = projected_earnings_y7 * projected_PE
# We find a projected valuation of 88525145.0677
# It's inflated as it doesn't take into account the risk
# We need to multiply it by the MARR
projected_valuation *= .5
# So we would invest $5M on a valuation of 44262672
price_per_share = projected_valuation/shares
shares_to_buy = round(requested_investment/price_per_share)
# We would need to issue 28240 new shares


postMoney = valuation.postMoney(
    requested_investment, shares+shares_to_buy, shares_to_buy)
preMoney = valuation.preMoney(postMoney, requested_investment)