According to FASB standards, how are not-for-profit organizations distinguished from a business? Discuss at least three aspects for full credit.

List two Constitutional powers of the Executive branch and then provide a way in which the Legislative branch (or just the Senate) can check that power.  

The War Powers Act of 1973 was an attempt by Congress to reclaim some of its war powers from the President.   A) List the Constitutional power of Congress and the Constitutional power of the President that were at the core of this conflict. B) How successful was this attempt, and why?  

There have been 4 amendments to the Constitution that protect the right of people to vote.  Provide the specific categories from these 4 amendments, based on which you cannot be denied the right to vote.  

(Weighted Average Cost of Capital). (65 points).  Solve the following weighted average cost of capital problem: You just started as a Financial Analyst at Gridiron Helmet Company (GHC), a small-cap publicly-traded company that manufactures football helmets.  Your manager has just informed you that your first task will be to calculate the weighted average cost of capital (WACC) for GHC.  The following general and company specific information has been provided to you: GHC’s $50 par preferred stock pays a fixed annual dividend rate of 6.75%. GHC believes that it could issue more preferred stock at its current price of $54.35. GHC’s common stock is currently selling for $45.00 per share and has not paid a dividend since its inception (5 years ago), and GHC does not expect to pay any dividend in the foreseeable future. Bloomberg.com currently indicates that 10-year Treasury-Notes are yielding 3.50%. Also, the market return for small-cap stocks is 10.75%, the market return for mid-cap stocks is 9.65%, and the market return for large-cap stocks is 9.15%.  Finally, according to Value Line, GHC’s beta is 1.22. GHC sold 15-year bonds with a par value of $1,000 that were issued exactly 3 years ago. The bonds pay a 5.75% coupon rate with interest paid on a semiannual basis.  Investors will currently pay 3% over face value for each bond. The market values of the capital structure of GHC is $5,000,000 preferred stock, $22,500,000 common stock and $16,000,000 long-term debt. GHC’s total combined state and federal tax rate is 27%. Given the above information, determine the following for Gridiron Helmet Company: Cost of preferred stock Cost of common stock Cost of debt capital Weighted average cost of capital (WACC)

(Project Free Cash Flows & NPV/IRR). (85 points). Solve the following project free cash flow problem: Gridiron Helmet Company (GHC), a manufacturer of football helmets, is concerned about concussions in football and is considering a new project involving the introduction of a new product line of helmets they plan to call the Shield.  This new project is expected to last four years, and then, due to the fact that technology is changing rapidly in this area, it is expected to be terminated at such time. The cost of new equipment required for the new product (the Shield) is $18,500,000.  Shipping and training expenses for the new equipment are $225,000.  The company has already incurred $1,725,000 for research & development costs related to the new helmet design and will need to spend an additional $350,000 before launch of the product to complete the design work.  Additionally, the company expects to incur $285,000 for product safety certification costs prior to the introduction of the new product (the Shield) and these certification costs are directly related to the introduction of this new football helmet. Unit sales of the new product (the Shield) are expected to be: 95,000, 115,000, 110,000 and 75,000, respectively for years 1 thru 4.  Average sales price per unit of the new product (the Shield) is expected to be $300 in year 1 and drop by 5% each year for years 2 thru 4.  Average variable costs per unit for the new product (the Shield) are anticipated to be $195 in year 1 and grow at inflation thereafter.  Fixed operating costs for the new product (the Shield) are estimated to be $2,125,000 in year 1 and grow at inflation thereafter.  To market the new helmet GHC will increase its marketing costs to $1,450,000 starting in year 1 from its current level of $1,200,000 and hold to the same amounts for years 2 thru 4.  GHC also expects to use a vacant building it owns for manufacturing of the new product (the Shield).  The building manager at GHC has found another company to lease the space for $275,000 per year in the event GHC does not need the space for the new Shield product. The marketing efforts related to the introduction of the new product (the Shield) are expected to increase the unit sales of one of the company’s existing football helmet product lines (the Protector) by 6,000, 8,000, 5,000 and 2,000 units, respectively in years 1 thru 4.  Average sales price per unit of this existing product (the Protector) is expected to be $280 in years 1 & 2, $260 for year 3 and $225 for year 4.  Average variable unit costs for the existing product (the Protector) are expected to be $175 per unit in year 1 and grow at inflation thereafter. In order to determine the initial working capital requirement to get production of the new product (the Shield) started, the company has determined this project will cause the following changes:   Without the Project With the Project Accounts Receivable $1,150,000 $1,275,000 Inventory $2,475,000 $2,925,000 Accounts Payable $950,000 $1,075,000   Thereafter starting in year 1, the total investment in working capital is expected to equal 7 percent of the relevant sales dollars for each year.  All working capital should be assumed to be liquidated at the termination of the project at the end of year 4.  Interest payments and other financing costs to support the new product (the Shield) are expected to be $1,800,000 annually for years 1 thru 4. The straight-line depreciation method over a four-year period with no salvage value should be assumed.    The inflation rate should be assumed to be 2.9% per year.  The company’s tax rate is 27%. Given the above information, determine the annual (Year 0 thru Year 4) incremental free cash flows associated with this potential new project.   Also, calculate the NPV, IRR and Payback Period for this project and indicate for each decision tool result whether the project should be accepted or rejected.  Use a WACC of 10% for the discount rate.  Also note the company requires a 4.0-year maximum payback period for new projects.

Under the terms of the original Constitution (the version ratified in 1788, before any amendments),  a) who was given the power to elect the President? b) how were the people given the power to elect the President to be selected? c) how many of people from each state would get to vote for President (how many electors from each state)? d) how many votes for President would each of these people get?    

Extra-credit Who cast the tie breaking vote in the vote for Secretary of Defense?

Extra-credit Who did the Senate confirm on Friday in a 51-50 vote to be President Trump’s Secretary of Defense?      

What would be an example of something other than chance that might have caused your results to not turn out exactly as expected? In other words, what might have caused there to be more or fewer green plants than the Punnett square predicted, besides just chance?