If the returns are capital appreciation

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Reference no: EM131020511

Really hoping to better understand this. Please explain how to calculate and what formulas to use in excel.

1. You are investing in a stock that will deliver 6% per year, for 6 years. Assume you invest $10,000 initially. The tax on both capital gains and dividends is 28%. a. If the returns are capital appreciation, you hold for 6 years and do not sell, what is the IRR? b. If the returns are capital appreciation, you hold for 6 years and sell, what is the IRR? c. If the returns are 3% capital appreciation and 3% in dividend income each year, and you do not sell, what is the IRR? d. If the returns are 3% capital appreciation and 3% in dividend income each year, and you sell at the end of 6 years, what is the IRR?

Reference no: EM131020511

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