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Assume that the acquisition was completed in 5 months (150 days). Assume further that Siegel purchased 300,000 shares of AXYS at an average cost of

Assume that the acquisition was completed in 5 months (150 days). Assume further that Siegel purchased 300,000 shares of AXYS at an average cost of $4.15, and shorted 29,800 shares of Celera. Siegel funded 70% of his purchase with debt. Celeras share price on the closing date was $27.43. Assuming a borrowing cost of 8%, calculate the return on Siegels investment for the holding period and on an annualized basis.The deal was structured as a stock swap in which AXYS shareholders would receive 0.1016 Celera share for each AXYS share. Celera had closed the previous day at $41.75, and AXYS at $3.45. W

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