What does the article mean by credit availability

Reference no: EM131023128

A newspaper article in the fall of 2007 stated that: "The luxury-home builder Hovnanian Enterprises reported its fourth consecutive quarterly loss on Thursday, citing continuing problems of credit availability and high inventory." Why was Hovnanian suffering losses? What does the article mean by "credit availability"? How would problems of credit availability affect a homebuilder such as Hovnanian Enterprises?

Reference no: EM131023128

Questions Cloud

Why was the government bailout controversial : Why was the government bailout controversial? Does the fact the federal government earned a profit on its investment in AIG mean that economists and policymakers who opposed the bailout were necessarily wrong? Briefly explain.

Experience rapid economic growth : How has India been able to experience rapid economic growth since 1991 despite poor education and health care systems?

What caused this change in the sources of mortgage finance : An article in a Federal Reserve publication observes that "20 or 30 years ago, local financial institutions were the only option for some borrowers. Today, borrowers have access to national (and even international) sources of mortgage finance." Wh..

Sources of panama growth : Judging from the experience of Singapore, if Panama is to maintain these high growth rates, what needs to be true about the sources of Panama's growth?

What does the article mean by credit availability : A newspaper article in the fall of 2007 stated that: "The luxury-home builder Hovnanian Enterprises reported its fourth consecutive quarterly loss on Thursday, citing continuing problems of credit availability and high inventory." Why was Hovnania..

Cause of low russian productivity : What factors would cause Russian labor productivity to be a third of U.S. labor productivity? The article notes that one cause of low Russian productivity is "just bad management." Why might Russian businesses suffer from bad management?

Alfarsi industries uses the net present value method : Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments.

Riskness and relative uncertainty of cash flows : Highland mining and minerals Co. is considering the purchase of two gold mines. Only one investment will be made. The australian gold mine will cost $1,649,000 and will produce $353,000 per year in years 5 through 15 and $503,00 per year in years 16 ..

According to the constant perpetual growth model : Trust Bankers just paid an annual dividend of $1.9 per share. The expected dividend growth rate is 6.1 percent, the discount rate is 12 percent, and the dividends will last for 18 more years. What is the value of the stock? A share of stock just paid..

User Account

All Pages