Question

Please explain the difference between Equity IRR and Return on Equity and which of the two is expected to be higher

Answer 1

This question is a bit vague. Return on equity is usually net income/equity. You can use different definitions of accounting performance over equity (e.g., operating profit/ equity). IRR is the discount rate that makes the free cash flows equal to the current stock price. You can't really say which one is higher, it really depends.