|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 15, Boesky Day.
Multiple Choice Questions
1. Why did Drexel remain a privately-held company?
(a) Joseph refused to allow it to happen.
(b) It was too much of a temptation for a hostile takeover.
(c) They did not want outsiders to get in on their business.
(d) Milken could then retain his need for secrecy.
2. What often benefited Drexel in dealing with its clients?
(a) positive publicity
(b) inside information
(c) equity from the deals they took part in
(d) leads for new clients
3. What does FIFI stand for?
(a) Field Investment File Information
(b) First Investors Fund for Income
(c) Fund Income from Favored Investors
(d) Five Investment Features Initiative
4. What did Bergerac and his allies forget in the process of fighting the takeover?
(a) That the courts could prevent them from offering a management contract.
(b) That Perelman had Minken behind him.
(c) The large cash bids by Pereleman would benefit the shareholders.
(d) The company was failing during that time.
5. What were many of the money managers who started with Milken in the late 1970s doing in the 1980s?
(a) retiring and taking extended vacations
(b) staying with Milken because he was the best
(c) creating new ways of financing takeovers
(d) running their own funds
Short Answer Questions
1. Why was Milken so interested in low grade bonds?
2. What did Milken and Joseph devise to keep business flowing during the recession?
3. What is it called when a firm decides to commit its own capital toward a takeover?
4. What two large companies did Drexel underwrite bond issues for in a ten-day period?
5. Who paid $2-billion for the Metromedia television stations and their assets?
This section contains 331 words
(approx. 2 pages at 300 words per page)