Dalla probabilità di default al costo del capitale aziendale: un’alternativa al CAPM per le piccole e medie imprese

This methodological note illustrates, both conceptually and practically, how to quantify the cost of capital using a specific version of the firm default probability. This approach is especially useful for small and medium-sized privately held companies, for which the usual methods – especially the CAPM - are not applicable, unless referring to listed comparables. The comparables approach may often be inappropriate because it does not consider the specific risk factors of the firm to be evaluated.