Now assume that companies can also choose to issue convertible debt to raise the $6 million. The debt has a face value F = $6M but can be converted into a proportion X of the company's equity in year 1 (after investors have learnt whether companies are good or bad but before year 2 cash flow uncertainty is realized). To solve questions (b) (c) below, assume that investors believe in period 0 that a company that issues convertible debt is good, and a company that issues equity is bad. (You will then check whether these beliefs are actually correct.) b) What proportion of year 2 cash flows will investors demand from companies that issue equity to be willing to finance the $6M investment in year 0? What proportion of year 2 cash flows (this is the X from above) will investors demand from companies that issue convertible debt, if we assume that convertible debt holders will convert into equity in year 1