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class IPOModel: | ||
def __init__(self, initial_valuation, funds_raised, operating_income, growth_rate, years): | ||
self.initial_valuation = initial_valuation | ||
self.funds_raised = funds_raised | ||
self.operating_income = operating_income | ||
self.growth_rate = growth_rate | ||
self.years = years | ||
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def calculate_ipo_valuation(self): | ||
# Calculate the IPO valuation using a simple discounted cash flow (DCF) model | ||
discount_factor = 1 / (1 + self.growth_rate) | ||
future_cash_flows = [self.operating_income * (discount_factor ** year) for year in range(1, self.years + 1)] | ||
total_cash_flows = sum(future_cash_flows) | ||
ipo_valuation = self.initial_valuation + total_cash_flows + self.funds_raised | ||
return ipo_valuation | ||
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def print_summary(self): | ||
ipo_valuation = self.calculate_ipo_valuation() | ||
print(f"IPO Valuation after {self.years} years: ${ipo_valuation:,.2f}") | ||
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# Example usage | ||
#initial_valuation = 500000000 # Initial company valuation before IPO | ||
#funds_raised = 100000000 # Funds raised during the IPO | ||
#operating_income = 75000000 # Annual operating income before IPO | ||
#growth_rate = 0.05 # Annual growth rate of operating income | ||
#years = 5 # Number of years for the IPO model | ||
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#ipo_model = IPOModel(initial_valuation, funds_raised, operating_income, growth_rate, years) | ||
#ipo_model.print_summary() |