Use the percent$-$of$-$sales method to prepare a pro forma income statement for the year ended December $31,2019,$ for Hennesaw Lumber, Inc.

Hennesaw Lumber, Inc. estimates that its sales in $2019$ will be $$4,500,000.$ Interest expense is to remain unchanged at $$105,000$ and the firm plans to pay cash dividends of $$150,000$ during $2019.$

Hennesaw Lumber, Inc.$\text{'}$s income statement for the year ended December $31,2018$ is shown below.

Foints: $0$ of $1$

Interpreting beta A firm wishes to assess the impact of changes in the market return on an asset that has a beta of $1\mathrm{.}5.$

a$.$ If the market return increased by $17\%,$ what impact would this change be expected to have on the asset's return?

b$.$ If the market return decreased by $10\%,$ what impact would this change be expected to have on the asset's return?

c$.$ If the market return did not change, what impact, if any, would be expected on the asset's return?

d$.$ Would this asset be considered more or less risky than the market?

a$.$ If the market return increased by $17\%,$ the impact on the asset's return is if the asset return decreases.$)$

$\%.($Round to one decimal place. Enter a negative percentage numbe