Star Inc. is contemplating acquiring its peer firm-Venus Corporation. The most recent information about Star is as follows: Free cash flow to the firm (FCFF) = 400 million, Market value of equity=$4,000 million, Outstanding debt=450 million; while the most recent information about Venus is as follows: FCFF = 300 million, Market value of equity=$3,000 million, Outstanding debt=300 million. Both firms are in steady state and are expected to grow 5% a year in the long term. The beta for both firms is 1, and before tax cost of debt of both firms is 5%. Tax rate is 30% for both firms. The treasury bond rate is 3%, and the market risk premium is 6%. As a result of the merger, the combined firm is expected to generate cost savings of 100 million per year. The combined firm does not plan to borrow additional debt. How much is the operating synergy worth in this acquisition plan?

Group of answer choices

$12,231.86 million

$3,269.06 million

$4,050.48 million

$12,998.75 million

$2,883.33 million