You have been asked to value Ausbiz, a private company, using an excess earnings method, given the following information: Working capital balance = $365,000 Fair value of fixed assets = $725,000 Book value of fixed assets = $500,000 Normalized earnings of firm = $105,000 Required return on working capital = 7.0 percent Required return on fixed assets = 8.0 percent Required return on intangible assets = 12.0 percent Weighted average cost of capital = 10.0 percent Long-term growth rate of residual income = 6.0 percent

What is Ausbizs return on working capital?

		$22,000
		$23,500
		$25,500
		$27,000