can you explain these steps in really detailed steps?

we know that cost of equity=20%

wacc=12%

Equity+debt=440 000

interest payment for debt=20 000 per year

Solution: Pro-forma financial statements: For setting up the balance sheet, we need to determine equity and debt. WACC=x+yx209+x+yy+((125%)withx+y=440.000andyi=20.00012%=440.000x20%+440.00020.00075%x=20%400.000(1208440.00020.000730)=189000,y=251000andi=2.97%