A large manufacturing firm $($Buyer$)$ wants to diversify horizontally by acquiring a smaller firm in the same industry $($Target$).$ The Buyer intends to offer shareholders of the Target $$16\mathrm{.}00$ per share for all of their outstanding shares. The Buyer believes that the synergy created by this acquisition will generate an additional $$4$ million in annual earnings above the current earnings of the two firms. The Cost of Capital $($Discount Rate$)$ of the Buyer is $20\%.$ Current information on the market status of the two firms is as follows:

Buyer Target

Market Price$/$Share $$26$ $$15$

Shares Outstanding $10$mil $8$mil

What would be the expected value of the shares of the Buyer and Target companies following this acquisition? Show the calculations you use to derive your answer.