Question: A well-established, profitable US toy maker, Telvoy Inc., visits the New York branch of the Bank of China, a. commercial bank. Telvoy has 2020 revenue

A well-established, profitable US toy maker, Telvoy Inc., visits the New York branch of the Bank of China, a. commercial bank.

Telvoy has 2020 revenue of $1 billion. It has rights to a new movie character toy, and it predicts 2021 revenue growth of $300 million. Telvoy wants to borrow enough money to fund its net working capital needs for 2021.

Mattel Inc. is a similar company to Telvoy. You can derive the NWC/ Sales ratio of Mattel Inc. (stock symbol MAT) from its year-end balance sheet for year 2020 and from its annual sales (on Bloomberg).

Based on your research, what is the proper loan size for Telvoy?

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