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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 12, Milken's Money Machine.

Multiple Choice Questions

1. By 1981, what was Drexel responsible for?
(a) moving Wall Street to Los Angeles
(b) engineering most of the hostile takeovers
(c) almost all of the junk bonds in the market
(d) leading the field in high interest bonds

2. What do raiders look for in companies to take over?
(a) companies saddled with heavy debt
(b) public good will, which continues after the takeover
(c) new research and development projects
(d) cash flow, which is one of the most important items in LBOs

3. Who told Perelman that Revlon was not for sale?
(a) Carl Icahn
(b) Michael Bergerac
(c) Tubby Burnham
(d) Michael Milken

4. What did Joseph label his brainstorming information about LBOs?
(a) the X-Files
(b) the M&A files
(c) Air Fund or the highly confident letter
(d) the CIA files

5. Who dominated the market in junk bond funds from 1978 on?
(a) Fidelity
(b) Drexel
(c) Lehman Brothers
(d) Morgan Investments

Short Answer Questions

1. How was Drexel being spoken of after the success of so many hostile takeovers?

2. What did Milken offer this market segment?

3. When he heard on the radio about a change in options to buy stocks, what did Milken do that saved Drexel Burnham Lambert?

4. Who was another player involved in the National Can takeover attempt?

5. How did Milken decide to help Peltz?

(see the answer key)

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