Notional Cost of capitalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Notional Cost of capitalThis topic has 1 reply, 2 voices, and was last updated 12 years ago by Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 26, 2012 at 12:45 pm #55767 abidfatima5MemberTopics: 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 #108767 Ken GarrettKeymasterTopics: 10Replies: 10537☆☆☆☆☆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.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In