The conversion feature, which can be part of either a bond or preferred stock, permits the 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.

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The Answer of The conversion feature, which can be part of either a bond or preferred stock, permits the 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.

The Conversion Feature, Which Can Be Part of Either a Bond