You have been asked to examine a valuation done of Loden Construction, a real estate and construction company. You have been provided with the income statement for the last year:

Revenues 1,000.0

Operating Expenses 722.3

Depr. & Amort. 100.0

= EBIT 235.0

In the valuation, the analyst has assumed a growth rate of 0.05 forever in revenues, operating income and depreciation, and assumed capital expenditures of $ 160.7 million (for next year). In addition, the analyst has assumed that non-cash working capital will be 0.26 of the change in revenues. (Tax rate = 20%) What is the return on capital being assumed in perpetuity by the analyst?