The lease multiplier developed by credit rating agencies to estimate the capitalized value of long-term operating leases calculated as 1 divided by the discount rate.

Question

Quizplus · Accepted Answer

The lease multiplier is indeed calculated as 1 divided by the discount rate. It is used to estimate the capitalized value of long-term operating leases, which is necessary for accounting and financial reporting purposes. The lease multiplier is often developed by credit rating agencies, as they have the expertise and tools to evaluate the creditworthiness of companies and their lease obligations.

The Lease Multiplier Developed by Credit Rating Agencies to Estimate