Internet Appendix for “ A Unified Theory of Tobin ’ s q , Corporate Investment , Financing , and Risk Management ” ∗

This appendix is organized as follows. Section A examines our model’s implication for the risk and return on equity, in particular, on how beta changes with the firm’s cash holdings. Section B studies the comparative statics of the stationary cash-capital ratio distributions. Section C calculates the endogenous average financing costs. Section D presents a model that endogenizes the credit line limit, and Section E illustrates the stationary distribution for the general case where the firm has access to a credit line. Finally, Section F derives the boundary conditions and outlines our numerical procedure.