Notional Cost of capital Home › Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA P5 Exams › Notional Cost of capital This topic contains 1 reply, has 2 voices, and was last updated by gromit 2 years, 10 months ago. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts November 26, 2012 at 12:45 pm abidfatima5Member Topics: 10Replies: 11 How is it computed and what is the concept behind it? Do we take tax effect or not? November 26, 2012 at 2:41 pm gromitKeymaster Topics: 2Replies: 3183 I assume you are talking about EVA. The notional charge for the use of capital is based on the WACC of the company applied to the capital employed. The concept is that if the company were on its own and not part of a group it would have to raise its own capital and pay for it. Author Posts Viewing 2 posts - 1 through 2 (of 2 total) You must be logged in to reply to this topic.