Unsustainable corporate profits


In 1996, the thirty U.S. corporations whose stock prices comprise the basis of the Dow Jones Industrial Average averaged total returns to their shareholders of 28.2 percent for the year, a substantial increase from the five year average of 18.3 percent. Each such increase in annual returns to shareholders further lifts the floor under investor expectations and increases the pressure on top managers to maintain such returns in the future - by any means.

(D) Detailed problems