During 2016, DEF Corp had outstanding 5-year bonds with a yield to maturity of 6% and a B rating. Assume the following: default rate for B rated bonds = 5.5%; loss rate for B rated bonds = 60%; average beta for B rated bonds = 0.26. If corresponding risk-free rates were 2%, and the market risk premium was 5%, estimate the expected return of DEF Corps debt using two different methods. What do you conclude? (50 marks) (b) Discuss with examples the direct action that shareholders can take to express their unhappiness with a firm.