New&New Sports Equipment must decide whether to obtain $1,000,000 of financing by selling common stock at its current price of $40 per share or selling convertible bonds. The firm currently has 250,000 shares of common stock outstanding. Convertible bonds can be sold for their $1,000 par value and would be convertible at $45. The firm expects its earnings available to common stockholders to be $700,000 each year over the next several years. e Which of the financing alternatives would you recommend that the company should adopt? Explain