Using the information given below:

bidder share price = $15/share

exchange ratio = 1.8

target share price= $20 per share

time lapse between announcement and closing date 4 months

dividend paid to target= $1.50 per share

dividend paid to bidder= $1.00 per share

interest rate to target for short selling is 6%

financing used for arbitrage strategy: 60% debt at 8% interest rate and 40% equity

What is your true annual return if you decide to play the arbitrage game?