The article explores how corporate decisions impact asset prices in imperfect markets. Financial constraints and uncertainty influence investment choices, cash management, and valuations. The study shows that both permanent and temporary shocks affect earnings of momentum firms, with financial constraints playing a role. Optimal corporate policies under uncertain financing conditions drive value and momentum premiums, explaining their performance in different market conditions. The research also estimates equity floatation costs over time and across companies, providing insights into market timing motives for financing decisions.