I NEED EXPLANATION ON THESE ANSWERS PLEASE.

Your task is to compute the Weighted$-$Average Cost of Capital $($WACC$)$ that should be used by Division A of Chariot Company. The formula for WACC is as follows:

$$ Chariot Company has three operating divisions: A$,$ B$,$ and C$.$

$$ Chariot Company$$s overall Beta is $1\mathrm{.}20.$

$$ The rate on $30-$year U$.$S$.$ government bonds is $5\mathrm{.}0\%.$

$$ The average spread between the S&P $500$ return and the return on long$-$term U$.$S$.$ government bonds is $6\mathrm{.}0\%.$

$$ The debt interest rate premium for Chariot Company$$s borrowing is $1\mathrm{.}30\%$ above the long$-$term U$.$S$.$ government bond rate.

$$ For Chariot Company as whole, debt as a percentage of total capital $($book value of debt plus market value of equity$)$ is $40\%.$ Equity as a percentage of total capital is $60\%.$

$$ Data about four companies in Division A$$s industry are as follows:

Debt as a Percentage of

Company Beta of Total Capital

Company $11\mathrm{.}3540\%$

Company $21\mathrm{.}7060\%$

Company $30\mathrm{.}8510\%$

Company $42\mathrm{.}2070\%$

$$ Because of the risky nature of its operations, the debt interest rate premium for Division A$$s borrowing is $3\mathrm{.}00\%$ above the long$-$term U$.$S$.$ government bond rate.

$$ Division A$$s debt as a percentage of total capital $($book value of debt plus market value of equity$)$ is $80\%.$ Equity as a percentage of total capital is $20\%.$

$$ The income tax rate, for both Chariot Company as a whole and for Division A itself, is $30\%.$

a$.$ What is the risk$-$free rate?

a$.5\%$

b$.$ What is the levered Beta of Division A$?$

a$.3\mathrm{.}64375$

c$.$ What is the after$-$tax cost of debt for Division A$?$

a$.5\mathrm{.}6\%$

d$.$ What is the cost of equity for Division A$?$

a$.26\mathrm{.}86\%$

e$.$ What is the WACC for Division A$?$

a$.9\mathrm{.}8525\%$