The Management Team of SoftWare Dreamworks Ltd

The management team of SoftWare Dreamworks Ltd. owns 35% of the outstanding shares of the company. the remainder are widely held by North American investors, with no on else owning more than 2% of the shares. However management is concerned about retaining control because there has been much takeover activity in the software industry recently. The firm's debt-Equity ratio sits at 60%. The current dividend payout ratio is 5%. How should management plan to obtain new funds for expansion into 4D research and development?

A) Issue new common shares.
B) Sell new bonds.
C) Issue new preferred shares.
D) Borrow long term from a bank.
E) Keep a high profit retention policy.

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