|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Who did Joseph hire with a three-year contract calling for $3 million per year plus extras?
(a) Dennis Levine
(b) Martin Siegel
(c) Antonio Gebauer
(d) Robert Salsbury
2. When did Drexel begin dealing based on insider information?
(a) When the Phillips Petroleum deal got underway.
(b) When Milken hooked up with Carl Ichan.
(c) When Milken financed Ivan Boesky.
(d) When they began backing OLTs.
3. What often benefited Drexel in dealing with its clients?
(a) leads for new clients
(b) inside information
(c) positive publicity
(d) equity from the deals they took part in
4. What happened in April of 1987 while the investigation of Milken and Drexel was proceeding?
(a) Milken fled the country.
(b) The Predators' Ball was cancelled.
(c) Milken tried to bribe an FBI undercover agent.
(d) The 1987 Predators' Ball was held.
5. Who at Drexel became a problem because of a lawsuit by Beverly Hills Savings and Loan?
(a) Jim Dahl
(b) Fred Joseph
(c) Martin Siegel
(d) Carl Ichan
6. Who made the contact for Wedvick with Kansa?
(a) Rodrigo Rocha
(b) Carl Icahn
(c) Fred Joseph
(d) Michael Milken
7. What was the subject of debate in the mid 1980s during the M&A onslaught?
(a) the economic advantages of takeovers
(b) the legality of hostile takeovers
(c) the dangers of over growth
(d) the cash flow of takeovers
8. In many ways, what became the role of Milken?
(a) the role of enforcer
(b) the rold of peacemaker
(c) the role of enquirer
(d) the role of adviser
9. What did Grant think about the junk bond business?
(a) that Wall Street had gone too far with junk bonds
(b) that it was too heavily regulated
(c) the Wall Street was too slow in accepting them
(d) that junk bonds was the perfect vehicle for M&A
10. What did Grant say the public was competing for at that point?
(a) for ownership in television stations and newspapers
(b) for invitations to the Preditors' Ball
(c) for securities of high and higher yield - and poorer quality
(d) for more and more media attention
11. Why did Drexel become the target of both an SEC and federal grand jury investigations?
(a) Milken and Drexel had underwritten quite a bit of Boesky debt.
(b) Milken and Drexel began making off-shore deposits.
(c) Milken and Drexel refused to cooperate with the investigation.
(d) Milken and Drexel immediately hired high powered lawyers.
12. Why was the Revlon takeover a landmark case for Perelman and Drexel?
(a) The most impassioned corporate defenders were united against Milken's onslaught.
(b) Because of its base of female customers, Revlon was vulnerable to bad publicity.
(c) This one was almost as large as the Phillips Petroleum takeover.
(d) If Perelman won, it would set the precedent for other such takeovers.
13. What became the craze on Wall Street in 1986?
(a) something called collective bargaining
(b) something called investment underwriting
(c) something called merchant banking
(d) something called equity sharing
14. What concept did Milken continue to support?
(a) the cautions of using junk bonds
(b) the owner-manager of businesses
(c) the legality of takeovers
(d) the switch to high-yield securities
15. What company did Wedvick find with a high investment-grade rating?
(a) Clarendon, a Bermuda based reinsurance company
(b) Standard and Poors
(d) Mutual of Omaha
Short Answer Questions
1. On May 12, 1986, who was charged with insider trading and agreed to cooperate with the government?
2. Why was the partner Groupe Bruxelles Lambert S.A. not happy with Drexel and trying to take it over?
3. Who told Perelman that Revlon was not for sale?
4. What did Bergerac's associates tell him about Perelman?
5. What was Peer Wedvick devising?
This section contains 629 words
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