Create a new spreadsheet using either Google Sheets or Excel. In your new spreadsheet, calculate the WACC for the following for-profit organization: Assume 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 $4 million of common stock that is estimated to have a cost of capital of 10%. What is its weighted average cost of capital? Step Two: In the same spreadsheet, calculate the WACC for the following non-profit organization: Assume 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 net assets without restrictions, with an estimated cost of capital of 6%, and $4 million of net assets with donor restriction (endowment), with an estimated cost of capital of 7%. What is its weighted average cost of capital? Step Three: Answer, in the same spreadsheet: Given that non-profit organizations are given money for free, why is their cost of capital often as high, or higher than for profit organizations?