Calculate the expected value of each of the following stocks and explain whether or not you would purchase them.

The price of Stock A is $$6\mathrm{.}00$ per share. You expect that the stock will pay a dividend of $$1\mathrm{.}40$ at the end of six years, at which time you expect the stock will be selling for $$11\mathrm{.}50$ per share. You require a $13\%$ rate of return.

The price of Stock B is $$140$ per share. The stock recently just paid $$4\mathrm{.}50$ a share in dividends, and you expect dividends to grow at $10\%.$ You require a $9\%$ rate of return.