Given the following information for McCumber Energy:

Debt - 7,000 6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity selling for 106 percent of par; the bonds make semi-annual payments

Preferred shares - 15,000 shares paying a dividend of $3.65 per preferred shares outstanding currently selling at $72 per share

Common shares - 300,000 common shares outstanding, selling at $55 per share.

McCumber Corporate Tax Rate: 35%

Year Risk free rate (Rf) Return from the market (Rm) Beta 2016 1.81 12.3 1.20 2015 1.75 15.5 1.5 2014 1.70 35.2 1.42 2013 1.80 (33.1) 1.33 2012 1.92 9.83 1.4 2011 1.87 17.2 1.5 2010 1.88 24.1 1.45 2009 1.90 14.5 1.2 2008 1.85 (10.2) 1.6 2007 1.77 8.3 1.25