Calculate the leverage effect for each year. What are your conclusions?

€m

1

2

3

4

5

Shareholders’ equity

100

115

320

300

240

Long- and medium-term debt

123

180

540

640

680

Financial expense before tax

11

18.5

29

63

83

Net income

14

16

(20)

(60)

(40)

Tax rate

35%

35%

35%

35%

35%