Schooner Yachts is a closely held company that was founded in 1970 by Russ Breaker to build a top-quality line of sailboats. The companys debt ratio is 48 percent, compared to an average ratio of 36 percent for sailboat companies in general. The stock is owned in equal parts by ten individuals, none of whom is in a position to put additional funds into the business. Sales for the most recent year were $12 million, and earnings after taxes amounted to $720,000. Total assets, as of the latest balance sheet, were $9.6 million. Schooner Yachts needs an additional $4 million to finance expansion during the current fiscal year. Given the worldwide growth in leisure-time activities and interest in sailing in particular, the firm can anticipate additional outside capital needs in the years ahead.

Should the company use private placement of debt, public offering of debt or ordinary shares public offering to raise additional funds? Explain your answer.

*I asked this question before, but I dont understand. The company is closely held, is it okay to go for ordinary shares public offering?