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I analyze the sensitivity of a ¢rm's investment to its own cash £ow in the benchmark case where ¢nancing is frictionless. This sensitivity has been proposed as a measure of ¢nancing constraints in earlier studies. I ¢nd that the invest-ment^cash £ow sensitivities that obtain in the frictionless benchmark are very similar, both in magnitude and in patterns they exhibit, to those observed in the data. In particular, the sensitivity is higher for ¢rms with high growth rates and low dividend payoutdoi:10.2139/ssrn.290444 fatcat:msau7clo4ncp3or7v6uhubgphu