Linda Clark received $174,000 from her mothers estate. She placed the funds into the hands of a broker, who purchased the following securities on Lindas behalf: a. Common stock was purchased at a cost of $104,000. The stock paid no dividends, but it was sold for $168,000 at the end of 3 years. b. Preferred stock was purchased at its par value of $24,000. The stock paid a 10% dividend (based on par value) each year for 3 years. At the end of 3 years, the stock was sold for $19,000. c. Bonds were purchased at a cost of $46,000. The bonds paid $2,760 in interest every six months. After 3 years, the bonds were sold for $49,100. (Note: In discounting a cash flow that occurs semiannually, the procedure is to halve the discount rate and double the number of periods. Use the same procedure in discounting the proceeds from the sale.) The securities were all sold at the end of 3 years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 16% return, and he gave Linda the following computations to support his statement: Common stock: Gain on sale ($168,000 $104,000) $64,000 Preferred stock: Dividends paid (10% $24,000 3 years) 7,200 Loss on sale ($19,000 $24,000) (5,000) Bonds: Interest paid ($2,760 6 periods) 16,560 Gain on sale ($49,100 $46,000) 3,100 Net gain on all investments $85,860 ($85,860 + 3years)/$174,000 = 16.4% To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1 and Exhibit 12B-2. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Requirement 1: Using a 16% discount rate, compute the net present value of each of the three investments. (Round your answers to the nearest dollar amount. Negative amounts should be indicated by a minus sign. Omit the "$" signs in your response.) Net present value Common stock $ Preferred stock $ Bonds $ Considering all three investments together, did Linda earn a 16% rate of return