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Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt, 58%; preferred stock, 15%;
Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt, 58%; preferred stock, 15%; and common stock, 27%. If the cost of debt is 5.7%, preferred stock costs 9.3%, and common stock costs 12.6%, what is Oxy's weighted average cost of capital (WACC)?
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