3. Financing with convertibles Just like any financing security, convertibles have certain advantages and disadvantages. Based on your understanding of using convertibles for financing, identify whether each of the features listed in the following table is an advantage or a disadvantage from an issuer's standpoint: Considering the pros and cons of convertible securities, in which of the following two situations is a company likely to issue convertibles? When the issuing company needs to raise equity financing but feels the market price of its stock is selling under the fair value of the stock When the issuing company needs to rase equity financing but feels the market price of its stock is selling above the fair value of the stock