—‘•Corporate financing: — 
Less money from inside More money from outside 
^ Average ^ 
Percent Net increases [billions of dollars] 
Data: Professor William L. White, Harvard University Data: Salomon Bros. 
r 
Corporate cash: 
Less to spend in 1975 
+ 25 
j 4 20 
I +15 
j 
I 
•+10 
J 
t 
I + 5 
I 
I 
! 
1967 ’88 ’69 *70 ’71 72 73 74 75 
» t— Est. —I 
▲ Billions of dollars 
Data: Commerce Dept., BW eat. 
A Flight from Equity 
Tho increased leverage that coporat.oru have bud .n\* • 
operations m the past ter. v.:.;rs is i.tj&v.-.u * :ve to 
major co.T.p'an ec in nine indv t . .vrj f^r or*.: r.* • 
fcntry, American Tcep’vhc '* Tctc.j'Oph. <:■ el'-.-vt. :•■. t . . 
arc stat.ttical To.rpcsitcs. the win 3 t.-.o ' h .:y r ..* • 
industry's balance sheet in 1C; 3 e-T 10,'0, , .v' : > 
stockholders’ OQu.ty ae.d a break .e.-.n of. I..a;a. c:.-* r : a ,. 
tern debt. ct*ert*k on debt, oed ctv*:::;. 
The major trend in cvc.y ir.Cu .: / l..v. i. I 
try.i-r I-'VI .if->• ;:nty. Th *'0 ha-. a'*..;> l»- a a r. . 
t ■ ; . ' 1 i ■ " ■ » .”1 or c*. •- 
(c.n . r.rt an* no.v !':mv .> AT. *. t.. ' . . Ti. 
buildup c f debt tv.*. gopo far •i'wvjh. »:*.d •.-P . • <1 
plans to . _ ty try • *.•..•*./»•; *.-.. •’ : * •< •’ *•. 
Tho cn-'T ,’»y *.\....te .tiro It*. * to • •• : '» f. ! .t .• t 
wait tor a h. jtv-r market p/cc t ,n u , n’y ,*.v\...l* •• 
(atound 60—a third lower than the Vvel oi l.;t) 
' Electrical and 
mrum I electronics 
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iy/o i jjc-j 
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Other 
liabilities 
_ L onq-icrm 
c ob I 
_ Stockholders’ 
equity 
X: 
ivCO ly.-u I