Select the option that is similar to the yield to maturity $($YTM$)$ percentage used in determining the pre$-$tax cost of debt financing.

$($a$)$ The effective required return $($cost$)$ for equity instruments.

$($b$)$ The effective after$-$tax cost of debt financing.

$($c$)$ The internal rate of return $($IRR$),$ that will discount all cash flows to zero.

$($d$)$ The IRR that is based on the current market value of the of debt instruments and all future after$-$tax cash flows.

Select one:

a$.$

The internal rate of return $($IRR$),$ that will discount all cash flows to zero.

b$.$

The effective after$-$tax cost of debt financing.

c$.$

The effective required return $($cost$)$ for equity instruments.

d$.$

The IRR that is based on the current market value of the of debt instruments and all future after$-$tax cash flows