Trends in Corporate Profitability And Capital Costs

Cover Trends in Corporate Profitability And Capital Costs
Trends in Corporate Profitability And Capital Costs
Daniel M Daniel Mark Holland
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7 945. 4 698. 8 1021. 9 683. 1 1015. 5 690. 8 1023. 2 Sources 1. Market Value of Debt . Net interest paid by non-financial corporations was capitalized at Moody's Baa corporate bond rate. After 1945, net interest was available by quarter from Survey of Current Business . Only annual figures were available for 1929 to 45. Worksheets were provided by BEA.
Yields were taken from Moody's Industrial Manual . Yields used to capi- talize quarterly net interest are simple averages of yields quoted for
...each month in the quarter. For 1929-45, the yield quoted for June was used.
2. Market Value of E quity . Net dividend payments by non-financial corporations were capitalized at the dividend yield of the Standard and Poor's Composite Index.
Annual dividend payments are available from 1929-45 from BEA worksheets. Quarterly payments are available from the Survey of Current Business for 1946-75.
The dividend yield used was an arithmetic averajje of monthly indexes reported for April, May and June, taken from Standard and Poor's Trade Statistics .


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