ABC Inc. is considering merging with DEF Inc. to create a global leader in their industry. Based on data provided by the two firms$$ accounting departments, the merger would achieve $$1\mathrm{.}7$ billion in after$-$tax savings per year starting in $3$ years from now $($the time index $=3)$ until infinite future. If DEF agrees, ABC will continue to operate while DEF$$s shareholders would receive $0\mathrm{.}1952$ of an ABC share for each DEF share they hold. Right now, ABC shares are selling for $$15\mathrm{.}40$ per share while DEF shares are traded at $$2\mathrm{.}82$ per share. DEF has $4,451,800,000$ shares outstanding while ABC has $1,441,000,000$ shares outstanding.

The merger$$s targeted savings would come in part from layoffs: ABC and DEF would plan to reduce their combined workforce by about $10\%,$ or about $8,800$ employees would lose their jobs. The severance pay package is estimated at $$100,000$ per employee. In addition to this one$-$time after$-$tax payment, the merger would also create about $$1\mathrm{.}5$ billion in immediate cash restructuring charges on an after$-$tax basis related to plant closure and other organizational changes.