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% |