Suppose that you are the financial manager of a closely held (owned by few shareholders) small electronics firm. You have a favorable investment opportunity and are considering raising funds to finance it, using subordinated convertible debentures or straight bonds with warrants attached. Equity funds are not a possibility, as you feel the current stock price has been unnecessarily penalized for recent start-up expenses and the firm's high debt ratio (relative to the industry). If you expect additional large future funds requirements, which financing alternative would you adopt? Why?