Identify whether each of the features listed in the following table is an advantage or disadvantage from an issuer's standpoint:

Feature	Advantage	Disadvatage
If a company issues convertible securities because it wants equality capital and the stockprice does not eventually increase, investors will not exercise the convertible, and the company will be left with debt.
Convertibles help companies sell bonds at low interest rates
If a company needs capital and wants to issue new stock but the current stock price is undervalued, the company can use convertibles to sell stock at a predetermined price

2. Considering the pros and cons of convertible securities, under which of the following two situations is a company likely to issue convertibles? a. When issuing new stock could have a positive signaling effect on investors b. When issuing new stock could have a negative signaling effect on investors