Using the following equation, suppose you have computed the required rate of return for the stock of Bulldog Trucking to be $16\mathrm{.}6$ percent.

$k_j=$hat$(r{)}_j+{}_j(hat(r{)}_m-$hat$(r{)}_j)$

Given the current stock price, the current dividend rate, and analysts' projections for future dividend growth, you expect to earn a rate of return of $18$ percent.

a$.$ Would you recommend buying or selling this stock? Why?

Because the expected return is $-$Select$-,$ Bulldog's stock

I purchased.

b$.$ If your expected rate of return from the stock of Bulldog is $15$ percent, what would you expect to happen to Bulldog's stock price? Bulldog's stock price is expected to $-$select$-.$

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