A share's internal rate of return (IRR) is the discount rate that cause the present value of future dividends to equal the price of the share.

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The IRR is the discount rate that makes the net present value (NPV) of all cash flows from an investment equal to zero, which in the case of a share, means the present value of future dividends equals the share price.

A Share's Internal Rate of Return (IRR) Is the Discount