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

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Figure

Figure 1: Case I. Liquidation. This figure plots the solution in the case when the firm has to liquidate when it runs out of cash (w = 0)
Figure 2: Case II. Optimal refinancing at w = 0. This figure plots the solution in the case of refinancing
Figure 3: Average q and marginal q. This figure plots the average q and marginal q from the three special cases of the model
Figure 4: Stationary distributions in the case of refinancing. This figure plots the stationary distributions of 4 variables in Case II
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