Thompson Wood Products has credit sales of $2.124,000 and accounts receivable of $354,000. Compute the value of the average collection period. (Use a 360-day year.) Average collection period 61 days Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data (Input your answers as a percent rounded to 2 decimal places.) Interest Rate 1-year T-bill at beginning of year 1 1-year T-bill at beginning of year 2 1-year T-bill at beginning of year 3 1-year T-bill at beginning of year 4 Expected Return 6001% 2-year security 3-year security 4-year security 666 700/% Biochemical Corp. requires $650,000 in financing over the years at 12.60 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 925 percent interest in the first year, 13.50 percent interest in the second year, and 10.50 percent interest in the third year. Assume interest is paid in full at the end of each year. a. Determine the total interest cost under each plan. Long-term fixed-rate Short-term variable-rate Interest Cost is 87,750 60.125 s b. Which plan is less costly? Long-term fixed-rate plan