Pecking Order Theory and Capital Financing

XYZ Corporation operates in the tech industry and has recently encountered an investment opportunity that requires additional capital of $10 million. The finance team is preparing to present a proposal on how to fund this investment while considering the company's capital structure policies.

According to the Pecking Order Theory, firms prefer internal financing first, followed by debt, and will issue equity as a last resort. This theory is based on the idea that asymmetric information exists between management and investors.

Given this context, the finance team is assessing the implications of various financing options, including retained earnings, bank loans, and issuing new equity. Which of the following financing strategies would align most closely with the Pecking Order Theory?