The managers of LBC Inc. went private in 2000 by buying all 1,000,000 of its outstanding shares at $25.00 per share. They did this by issuing 20-year bonds that generated $20,000,000, and the management team provided the remainder. Bonds were issued at $1000 per value each. The bonds paid 10% annually. Investment bankers contacted the firm in 2001 and indicated that if they reentered the public market, the 1,000,000 shares it purchased to go private can now be reissued to the public at a price of $55 for each share. (Note: Management will need to pay off all the bonds that are trading at $950.) At the time of the purchase, using a 7% interest rate, what is the return generated with the private equity offering?