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.