The weighted average cost of debt and equity capital first as increases and then because of increased financial and credit risks. increases; net farm income, declines declines; asset; rises 0 declines; leverage; rises increases; operating expenses; declines The weighted average cost of debt and equity capital first as increases and then because of increased financial and credit risks. increases; net farm income, declines declines; asset; rises 0 declines; leverage; rises increases; operating expenses; declines