Carmen Santiago decided to invest $12,000 in shares of the AT&T company that pays her 5% in dividends each year. In 5 years she will sell the shares for market value, which she estimates will have increased in value by 1% of their original value. The combined marginal tax rate she applies to him is 39%. If the inflation rate is 6%, determine:
a) The internal rate of return before taxes, ignoring inflation.
b) The internal rate of return after taxes, ignoring inflation.
c) The internal rate of return after taxes, taking into account inflation.

Answer rating: 100% (QA)

Internal rate of return IRR is a value at which PV of i... View the full answer