r = Rf + Beta(Rm Rf)

May I know for the below calculation, why is it written as 0.032 + 1.09 (0.07)? Refer to the above equation, the last part is (Rm Rf), shouldn't it be 0.032 + 1.09 (0.07 - 0.032)?

And lastly for the below calculation part, refer to the highlighted, why do we need to insert the YTM (wB)(kB)? The YTM is 5.22%

Please kindly clarify my doubts, thanks!

Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. The cost of equity is: RE=.032+1.09(.07) RE=.1083,or10.83% Step 3: WACC=(wB)(kB)(1Tc)+(wE)(kE)+(wP)(kP)WACC=.0522(10.21)($16,200,000/$55,275,000)+.1083($36,800,000/$55,275,000)+.0431($2,275,000/$55,275,000)WACC=0.086or8.6%