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A Unified Theory of Tobin's q, Corporate Investment, Financing, and Risk Management

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Figure

Table II
Figure 1. A unified framework for risk management.
Figure 2. Case I – liquidation. This figure plots the solution for the case in which the firm has to liquidate when it runs out of cash (w = 0).
Figure 3. Case II – optimal refinancing. This figure plots the solution for the case of refinancing.
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