The Following Data Relates to the Miracle Corporation and Its

question 1

Multiple Choice

The following data relates to the Miracle Corporation and its Toy Division. $$\begin{array} { | l | r | } \hline \text { Toy Division sales } & \$ 8,000,000 \\\hline \text { Toy Division aperating income } & \$ 480,000 \\\hline \text { Toy Division total assets } & \$ 2,000,000 \\\hline \text { Toy Division current liabilities } & \$ \text { 600,000 } \\\hline \text { Corporate target rate of return } & 14 \% \\\hline \text { Corporate weighted average cost of capital } & 10 \% \\\hline \text { Corporate effective tax rate } & 30 \% \\\hline\end{array}$$

- What is the Toy Division's capital turnover?

• A)3.3
• B)4.0
• C)4.2
• D)16.7

Differentiate between correlation and causation and understand the significance of research designs in establishing causal relationships.

Understand the difference between experimental and correlational methods and their applications.

Grasp the concept of independent and dependent variables in experimental research.

Appreciate the significance of random assignment in experimental design for causal inference.

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