The weighted average cost of capital for a firm is the: overall rate which the firm must earn on its existing assets to maintain the value of its stock. rate the firm should expect to pay on its next bond issue. discount rate which the firm should apply to all of the projects it undertakes. rate of return that the firm's preferred stockholders should expect to earn over the long term. maximum rate which the firm should require on any projects it undertakes.

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."