Question 1. You can use the following hypothetical scenarios/information, (i) and (ii), to think about Q1.1-1.2: (1) Rate of return on farm asset is 0.055 and Cost of farm debt is 0.061 (ii) Rate of return on farm asset is 0.094 and Cost of farm debt is 0.059 1.1 When the firm is not using any type of financial leverage, the rate of return on farm equity will be the rate of return on assets. 1.2 When the firm is using certain degree of leverage to fund their increasing investment activities, the rate of return on farm equity will be the rate of return on assets. Hint: What concept do we need to address this question? Put down possible outcomes (if more than one) for both 1.1 and 1.2, as well as its preexisting condition. Show your thinking process. Please give short and concise