Introduction of the term Financial Leverage
Give a brief introduction of the term Financial Leverage?
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It is a leverage that refers to high level of profitability due to high fixed financial expenditures. It consists of preference dividend and interest on loan. Higher financial leverage points out higher financial risk and higher break points. In this category the managers have flexibility in the choice of capital structure.
Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below: Q : Elucidate reallocation of resources Elucidate reallocation of resources?
Elucidate reallocation of resources?
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