Question: WSB Inc has common stock with a current market value of $462 million and bonds outstanding with a face value of $748 million. The bonds

WSB Inc has common stock with a current market value of $462 million and bonds outstanding with a face value of $748 million. The bonds currently trade at 86% of par, have a current yield of 4.41%, and capital gains yield of 2%. If WSB was all equity, its beta would be 0.6. Assuming a world with no taxes and no bankruptcy, what is WSB's stock beta? b

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