Start learning →

What is the cost of capital in EVA?

AAverage tax rate on profit
BMinimum return investors need
CDividend paid on equity only
DInterest rate on bank loans
Answer & Solution
Correct answer: B. Minimum return investors need
It is the minimum return required to compensate debt and equity investors for bearing risk, their opportunity cost.
Practise this question with Quill — CA Final →

Keep practising Strategic Performance Measures

Browse all Strategic Performance Measures questions for CA Final, or explore more Cost and Management Accounting topics.

Start a Strategic Performance Measures lesson →
Related questions