Bloom Inc. management has decided to repurchase some of the company's shares. The company has 5,000,000 shares outstanding that trade at $40.00 per share and has stockholders' equity of $200,000,000. It plans to repurchase 400,000 shares at $40.00 and will use debt to finance the purchase at an interest rate of 7.0%. The company's EBIT is $25,000,000. Ignoring income taxes what is the return on equity after the repurchase? (go to 2 decimals)