161 Different loan rates.

Winthrop Enterprises is a holding company(a firm that owns all or most of some othercompanies' outstandingstock). Winthrop has four subsidiaries. Each subsidiary borrows capital from the parent company for projects.

a.Ervin Company is successful with its projects92% of thetime,

b.Morten Company86% of thetime,

c.Richmond Company79%of thetime,

d.and Garfield Company95% of the time.

e.What loan rates should Winthrop Enterprises charge each subsidiary forloans?

162 Different loan rates.

Keith Peterson is the CFO of Springfield Soups and Sauces. Thecompany's typical success rate for new products is86%. Keith wants to improve this success rate to89%.

a.What loan improvement(in terms ofrates) would do that for Springfield Soups andSauces?(Round to two decimalplaces.)