You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company. UnderWater$$s stock price is $$20,$ and it has $2$ million shares outstanding. You believe that if you buy the company and replace its management, its value will increase by $40\%.$ You are planning on doing a leveraged buyout of UnderWater, and will offer $$25$ per share for control of the company.