2) What is equity financing in the not-for-profit sector? Name a specific type of solicitation for contributions.

3) How do investors make money on an organizations stock? Give an example.

6) Assume that a for-profit company has $8 million of long-term debt with an interest rate of 6%. It has $3 million of preferred stock with a required dividend rate of 8%. And it has $4 million of common stock that is estimated to have a cost of capital of 10%. What is its weighted average cost of capital?

7) Assume that a not-for-profit company has $10 million of long-term tax-exempt debt with an interest rate of 4.5%. The organization has $7 million of unrestricted net assets, with an estimated cost of capital of 6%, and $4 million of restricted net assets (in an endowment) with an estimated 7% return on assets (cost of capital). What is its weighted average cost of capital?