Kates Cafe is looking to purchase Hanks Heaters for $20 million. Hanks heaters currently has a market value of $16 million. Kates Cafe is valued at $35 million and forecasts $3 million of synergies for the merger. What is the likely value of Kates Cafe if the merger is successful?

a) $42 million

b) $36 million

c) $38 million

d) $35 million