The Web site www.federalreserve.gov/releases/z1/current/data.htm provides data on sources of funds and an aggregate balance sheet for nonfarm nonfinancial corporations. Look at Table F.102 for the latest year. What proportion of the funds that companies needed was generated internally and how much had to be raised on the financial markets? Is this the usual pattern? Now look at "new equity issues." Were companies on average issuing new equity or buying their shares back?
An aggregate balance sheet for U.S. manufacturing corporations can be found on www.census.gov/csd/qfr. Find the balance sheet for the latest year. What was the ratio of long-term debt to long-term debt plus equity? What about the ratio of all long-term liabilities to long-term liabilities plus equity?
