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1.4 Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firms capital structure targets the following proportions: debt, 55%; preferred stock,

1.4 Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firms capital structure targets the following proportions: debt, 55%; preferred stock, 10%; and common stock, 35%. If the cost of debt is 6.7%, preferred stock costs 9.2%, And the cost of common stock is 13%. Calculate the weighted average cost of capital.

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