Answer is provided but I don't understand what this line means, or how we get here: " 32(PVIFA R%50) + $1000 (PVIF R% 50) . please explain step by step how we get this line and please also explain the calculations that take place here to end up with the result of 2.895%. if it involves the use of a financial calculator , please explain how it is used to solve it. Thank you !

15. Finding the WACC (L03) Given the following information for Magrath Power Co., find the WACC. Assume the company's tax rate is 35 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par, the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. (L04) We will begin by finding the market value of each type of financing. We find: MVp=10,000($1,000)(1.08) = $10,800,000 MVE = 495,000($63) = $31,185,000 MVp = 35,000($72) = $2,520,000 And the total market value of the firm is: V = $10,800,000+ 31,185,000 + 2,520,000 = $44,505,000 Now, we can find the cost of equity using the CAPM. The cost of equity is: RE=0.032 + 1.15(0.07) = 0.1125 or 11.25% The cost of debt is the YTM of the bonds, so: Po= $1,080 - $32(PVIFAR 50) + $1,000(PVIFR%50) R = 2.895% YTM= 2.895% x 2 = 5.790% And the after-tax cost of debt is: Rp = (1 -0.35)(0.0579) = 0.037635 or 3.764% The cost of preferred stock is: Rp = $3.50/$72 = 0.04861 or 4.8610 Now we have all of the components to calculate the WACC The WACC WACC -0.03764(10,800,000/44,305,000) = 0.1125(31,185,000/44, 505,000) 0.04861(2,520,000/44,505,000) - 0.0907 or 9.07% Notice that we didn't include the (1 t) term in the WACC equation. We used the after tax cost of debt in the equation, so the term is not needed here