At the beginning of the year, Magna Inc.'s management is considering making an offer to buy Daveed Corporation. Daveed's projected operating income (EBIT) for the current year is $30 million, but Magna believes that if the two firms were merged, it could consolidate some operations, reduce Daveed's expenses, and raise its EBIT to $35 million. Neither company uses any debt, and they both pay income taxes at a 35% rate. Magna has a better reputation among investors, who regard it as very well managed and not very risky, so its stock has a P/E ratio of 12 versus a P/E of 9 for Daveed. Since Magna's management would be running the entire enterprise after a merger, investors would value the resulting corporation based on Magna's P/E. If Daveed has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders?