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The conversion feature, which can be part of either a bond or preferred stock, permits a firm to raise additional funds at some point in the future by selling common stock, thereby shifting the company's capital structure to a less highly levered position.
Project Approval
The process of gaining formal consent to proceed with a project, typically involving an assessment of its feasibility and potential impact.
After-Tax Cash Flow
The amount of cash a company has left after it has paid taxes, often used to determine a project's or investment's viability.
Capital Asset
A long-term asset that is significant in value and is used for operations, not easily converted to cash, and often depreciates over time.
Tax Rate
The tax rate is the percentage at which an individual or corporation is taxed, which can vary depending on income level, type of income, or jurisdiction.
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