| The credit market crisis increases the cost of borrowing for financial firms. This increasing cost lowers margins and decreases the free cash flow to shareholders. As free cash flow rises, so does the value of the firm. If cost are high, then loan growth slows and further weakens cash flow for the business.
The crisis also affects capital-intensive companies, which either have to borrow money to fund large projects or have customers who have to borrow money to afford the large projects created by the company. Long DescriptionSource: http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2008 - (edit / improve) |
SWOT ThreatsCompany Index See Related Investments Below General Electric (NYSE:GE) (2) Rate this SWOT statement |
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