2. The method suggested by Hovakimian (2009, Determinants of Investment Cash Flow sensitivity) to identify if a firm is finance constrained or not allows individual firms to be constrained in one year and unconstrained in another. 3. Price jumps are observed when dividends change and such episodes can be interpreted as refutations of the value invariance principle. 4. All attempts at explaining cross sectional variation across firms in a single country of leverage have to recognize that the relationship between the theories and empirical proxies is weak and thus one needs to be careful before claiming that existing theories have significant power in explaining leverage. 5. The term "finance constraint" as used in the Marris Growth Model of 1963 and as used in the paper Capital Market Imperfections and Investment" by Glen Hubbard in 1998 means essentially the same thing. 2. The method suggested by Hovakimian (2009, Determinants of Investment Cash Flow sensitivity) to identify if a firm is finance constrained or not allows individual firms to be constrained in one year and unconstrained in another. 3. Price jumps are observed when dividends change and such episodes can be interpreted as refutations of the value invariance principle. 4. All attempts at explaining cross sectional variation across firms in a single country of leverage have to recognize that the relationship between the theories and empirical proxies is weak and thus one needs to be careful before claiming that existing theories have significant power in explaining leverage. 5. The term "finance constraint" as used in the Marris Growth Model of 1963 and as used in the paper Capital Market Imperfections and Investment" by Glen Hubbard in 1998 means essentially the same thing