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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 13, The Enforcer.

Multiple Choice Questions

1. Why did the stripped bonds result in large tax benefits?
(a) no law covered the stripped Treasury security
(b) without the coupons the securities were untraceable
(c) stripping the securities left them worthless
(d) those sales did not have to be reported as income

2. By 1983, what was the worth of Drexel's junk bond business?
(a) $40 billion
(b) $4.690 billion
(c) $2 billion
(d) $460 billion

3. Who were some customers who received better deals from Milken?
(a) Carl Icahn and Samuel Heyman
(b) Murdock and Turner
(c) Oscar Wyatt and Coastal Corporation
(d) Perelman and Rocho

4. When were the tax laws changed to minimize the benefits of stripping?
(a) In 1982
(b) In 1989
(c) In 1990
(d) In 1991

5. Why did Milken's people say they performed so well?
(a) because he would accept nothing less
(b) because they were maing so much money
(c) because they learned from the King
(d) because they had to get up so early

Short Answer Questions

1. Why was Revlon attracting raiders?

2. What are two other notable takeovers done by Perelman after Revlon?

3. Why did people like Lawrence Coss of Green Tee Acceptance feel they were targets of hostile takeovers?

4. What had been Perelman's greatest acquisition before Revlon?

5. What could happen to Drexel with so much power vested in one man?

(see the answer key)

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