—‘•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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Other
liabilities
_ L onq-icrm
c ob I
_ Stockholders’
equity
X:
ivCO ly.-u I