A large, mature, diversified and publicly traded company sells the smallest of its business segments to a strategic buyer for cash. It uses the proceeds to pay off all bank debt and subordinated debenture debt on its books. The company believes the stock is trading at a reasonable price and continues to pay a regular, steady dividend to shareholders. Management's strategy is to embark on an aggressive growth plan including a major acquisition.

Based on the above information, if the company uses the trade$-$off theory in considering its WACC, how will it finance its growth?

A$.$ By using long$-$term debt

B$.$ By issuing Class A stock

C$.$ By using retained earnings

D$.$ By issuing Class B stock