Venture capital is an important factor in the development of entrepreneurship and in the establishment of new, knowledge-and-technology-based companies. In transition economies, the intensity of equity investing is far behind the developed market economies, making the EU and individual...

The article sheds light on the evaluation of cost of equity, which is important as it determines the minimum yield the investors require on the invested capital. We use the cost of equity as a discount rate to calculate the present value of the expected free cash flows which belongs to the...