Misconception · MIS:weighted-average-rate-is-cost-of-capital

Mistaken idea “The weighted-average lease rate is cost of capital”

Mistaken reasoning: This mistake turns a portfolio measurement disclosure into a financing or valuation benchmark.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

The disclosure summarizes rates used to measure recognized lease balances. It is not WACC, a marginal borrowing quote, or a complete renewal-risk measure.

Where to watch

When this mistake may appear

  • The note reports one weighted-average discount rate.
Check your work

Your work may contain this mistake if:

  • Compare the rate directly with WACC or borrowing cost without population and basis analysis.