2. Given the information in the table below, if farmer C increases his leverage from .20 to .50, what impact will this have on the values in the table? Compute values and insert them in the blank spaces. eq. 6.2: where g=(rPa-iPd)(1-t)(1- c) Table 6.2 Rate of Growth of Equity for Different Leverage Rates Farmer Farmer C Farmarn $880,000 $143,333 $716,667 .20 $1,533,334 $716,667 $716,667 .50 1.00 Item Balance Sheet 1. Assets 2. Debt 3. Equity 4. Leverage (D/E) Income Statement 5. Return to assets(12% of line 1) 6. Interest on debt (7% of line 2) 7. Taxable income 8. Taxes (20%of line 7) 9. After-tax income 10. Consumption (50% of line 9) w 11. Addition to retained earnings 12. Rate of growth of equity (line 11/ line $103,200 -$10,033 $93,167 -$18,633 $74,534 -$37.267 $37 267 5.200% $172,000 $50,167 $121,833 -$24,367 $9766 $48.733 $48.733 6.800% 865 word