5. The basic EOQ model assumes Name A. variable demand known with certainty. B. variable cost of goods sold known with certainty. C. constant demand known with certainty. D. constant obsolescence known with certainty. 6. The objective of adopting a just-in-time inventory system is to A. increase the operating cycle. B. reduce the operating cycle. C. increase sales. D. reduce accounts receivable turnover. 7. A unique feature of commercial paper is that A. it is unsecured. B. it requires collateral. C. it never defaults. D. it must be approved by the Securities and Exchange Commission 8. To receive a declared dividend, a stockholder must be shown as an owner on A. the declaration date. B. the ex-dividend date. C. the record date. D. the payment date. 9. Which of the following is not a key dividend consideration? A. Legal constraints B. Tax considerations C. Growth prospects D. Inventory turnover ratio 10 If a stock is trading for $25 per share the day before the ex-dividend date. what should happen to the price of the stock on the ex-dividend date, assuming no unusual circumstances, if the dividend declared is $1 per share? A. Nothing B. Increase $1 per share C. Decrease $1 per share D. Increase to $27 per share