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This is where measures like beta come in to play. Bear in mind, a cost of equity calculation does not
require beta, it’s just something that’s historically been used a lot.
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Hmm, I'm pretty sure that their criticism is that the promoters of
EVA use Beta to calculate cost of equity. It's "Beta" they've long derided as twaddle, as they regard it as meaningless and with zero correlation to capital costs or equity risks.
Of course they've been imposing hurdle rates on their subsidaries since the sixties. So they don't disagree with estimating a cost of capital, they just don't think there is a formula for it.