You are considering this investment: Preferred stock with a market price of $$80$ and pays an annual dividend of $$12.$ Your required rate of return for this stock is $14$ percent. Calculate the value of the preferred stock and decide if you should purchase the stock.

Common stock that recently paid a $$3$ dividend. The growth rate of the stock is $5\%.$ The market price of the stock is $$25$ and you think a reasonable required rate return for the stock is $20$ percent. Calculate the value of the common stock and decide if you should purchase the stock.