Companies that perform well experience increase in the value of their firm. In addition, optimal return is a good sign for investors. It reflects good company performance and future prospects. The selection of the types of assets to be invested and the right types of financing sources result in optimal returns for the company. The right investment decisions and choice of funding sources are important because they affect the company's financial performance. Managers who are responsible for the management of companies are faced with two important decisions - investment and funding.
