Good Afternoon, I am trying to calculate the value of operations of a firm. I am

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Good Afternoon, I am trying to calculate the value of operations of a firm. I am having trouble and feel as if my calculations are off. Can someone please overview and advise? Thank you for your assistance :) CAPM Rf= Risk Free ( Src: 10 Year Treasury Bond Yield) 1.812 RPm= Risk Premium ( Src: Market Suggested) 5% 5 Be= Beta (Soure: Yahoo Finance) 0.97 CAPM = Re = Rf + Be (RPm) = 1.812 + .97(5) =1.82 + 4.85 =6.67 WACC RE = CAPM = Cost of Equity - 6.67 RD = Bond YTM (Src: Morning Star)= After Tax Cost of Debt - (4.18%*(1-.35))= 2.70% RP= Cost of Preferred Stock - 0 TC = Tax Rate - 35% = .35 wE = E/V = percent financed with equity - 90.1% = .901 wD = D/V = percent financed with debt - 9.9% = .0099 wp = P/V = percent financed with preferred - 0% WACC = wE*RE + wD*RD(1-TC) = .901(6.67)+ .0099(2.7*.65) =(.901*(.0667))+ (.0099(.027*.65)) WACC= 0.060270445 Free Cash Flow EBIT=$3,910,046 Tax Rate=0.65 using standard corporate tax rate NOPAT= EBIT*Tax Rate NOPAT= $2,541,530 NOWC= Current Operating Assets - Current Operating Liabilities 2011 Current Operating Assets= $11,423,153 Current Operating Liabilities= $2,202,053 NOWC= $9,221,100 Fixed Assets(PPE)= $1,986,216 Total Operating Capital= $11,207,316 2010 Current Operating Assets= $10,019,935 Current Operating Liabilities= $1,665,783 NOWC= $8,354,152 Fixed Assets(PPE)= $1,523,333 Total Operating Capital= $9,877,485 Change in NOWC= $866,948 Change in Fixed Assets= $462,883 Investment in Operating Capital = $1,329,831 Free Cash Flow = NOPAT - Investment in Operating Capital FCF 11(Year 0)= $1,211,699 Growth= 11.8% FCF 12 (Year 1)= $1,354,679 FCF 13 (Year 2)= $1,514,532 FCF 14 (Year 3)= $1,693,246 FCF 15 (Year 4)= $1,893,049 FCF 16 (Year 5)= $2,116,429 FCF 17 (Year 6)= $2,366,168 FCF 18 (Year 7)= $2,645,376 FCF 19 (Year 8)= $2,957,530 FCF 20 (Year 9)= $3,306,518 FCF 21 (Year 10)=$3,696,688 Value of Operations: FCF0 = $1,211,699 WACC = 0.060270445 g = 0.118 Value of Operations= -23,465,958 Can Value of Operations even be negative? AH! Please help :)

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