Importance of WACC for Unquoted Organisation?

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Rasheedat Mustapha

Importance of WACC for Unquoted Organisation?

What are the importances of WACC to an unquoted organisation? Thanks

  Ahid Moghal
Teacher, United Kingdom

Importance of WACC for Unquoted Organisations

Unquoted, like quoted companies borrow money from various sources. They need to know what their minimum ROCE should be to service these sources.
WACC is no more than the minimum ROCE that a company should achieve to be able to pay dividends to its investors.

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