The Following Data Relates to the Miracle Corporation and Its

question 154

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 Return on Investment (ROI) ?

• A)6%
• B)24%
• C)30%
• D)400%

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Definitions:

Smiling

A facial expression formed by flexing the muscles at the sides of the mouth, often signifying joy, amusement, or sociability.

Blind Group

A control group in an experiment that is not exposed to the treatment or intervention being tested, ensuring that the effect of the variable being studied can be accurately measured.

Social Smile

An infant's spontaneous smile, often occurring from birth and becoming socially responsive between 6 to 8 weeks of age.

Greeting

A polite word or sign of welcome or recognition exchanged between people when meeting or communicating.