3. PharmaBro, a pharmameutical research and manufacturing co…
3. PharmaBro, a pharmameutical research and manufacturing company, is currently a privately held corporation. The owners of PharmaBro feel that they could significantly increase the company’s profitability with new capital. The new capital would have to come from issuing stock to new investors. The owners of PharmaBro estimate that they would need about $20 million to carry out the expansion plans. What are the options available to PharmaBro and discuss the advantages and disadvantages of each.