At the beginning of the year cheese inc.'s management is considering making an offer to buy soup corporation. soup's projected operating income (ebit) for the current year is $40 million, but cheese believes that if the two firms were merged, it could consolidate some operations, reduce soup's expenses, and raise its ebit to $58 million. neither company uses any debt, and they both pay income taxes at a 40% rate. cheese has a better reputation among investors, who regard it as better managed and also less risky, and its stock has a p/e ratio of 16 versus a p/e of 12 for soup. since cheese's management will be running the entire enterprise after a merger, investors will value the resulting corporation based on cheese's p/e. based on expected market values, how much synergy should the merger create? show your calculations, if any, and explain your answer.