Company A makes an offer of $44-per-share for Company B

Company A makes an offer of $44-per-share for Company B. Immediately after the announcement shares of Company A are selling for $86 and shares of company B are selling for $(40+.1*B). The deal is expected to close in 120 days. a. If the deal closes, what would be the annualized return for a risk arbitrager who buys shares of Company B at $(40+.1*B)? b. Suppose instead, that Company A offers 0.5 of its shares for one of the target. Describe the trading strategy that the arbitrager should undertake and determine his annualized return if the deal closes.