A stock's internal rate of return (IRR) is the discount rate that cause the present value of future dividends and the price at which a stock is expected to be sold to equal the current price of the stock.

Question

Quizplus · Accepted Answer

The IRR is the discount rate that makes the net present value (NPV) of all cash flows (including dividends and sale price) from an investment equal to zero, which aligns with the given statement.

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