Abstract:
Our research project is based on the solution regarding to have the stability of cash flow of the firm which has been in the business of system of integration.
AVEROX is providing Network Engineering and Network Services to telecom carriers. The problem with AVEROX is lack of availability of funds because firm has to spend its major capital investment for giving engineering services as they have to import equipment from principle through L. C agreement.
In other words, AVEROX has to import equipment on cash out of its capital investment which leads to disturbance in cash flow and AVEROX cannot spend enough money on network Services business which is the core profitability area of business.
Banks are not willing finance in anyway due to the uncertainty of the industry and other systematic risks.
The objective of our research project is to give best alternatives to raise funds. We recommend equity financing for the company after analysis of so many consequent advantages.