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 $1,000$

$-$ Operating Expenses $787\mathrm{.}6$

$-$ Depr. & Amort. $100$

$=$ EBIT $279\mathrm{.}5$

In the valuation, the analyst has assumed a growth rate of $0\mathrm{.}05$ forever in revenues, operating income and depreciation, and assumed capital expenditures of $ $167\mathrm{.}3$ million $($for next year$).$ In addition, the analyst has assumed that non$-$cash working capital will be $0\mathrm{.}26$ of the change in revenues. $($Tax rate $=20\%)$

What is the return on capital being assumed in perpetuity by the analyst?