Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt,

59%;

preferred stock,

19%;

and common stock,

22%.

If the cost of debt is

5.8%,

preferred stock costs

9.7%,

and common stock costs

12.5%,

what is Oxy's weighted average cost of capital

(WACC)?