View a FREE sample

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) those sales did not have to be reported as income
(b) no law covered the stripped Treasury security
(c) without the coupons the securities were untraceable
(d) stripping the securities left them worthless

2. In many ways, what became the role of Milken?
(a) the rold of peacemaker
(b) the role of enforcer
(c) the role of adviser
(d) the role of enquirer

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

4. What did the Milken brothers do probably without notifying Drexel?
(a) underwrite bond issues in excess for $1 trillion
(b) set up their own investment banking business
(c) investment partnerships that were to be registered with Bear Stearns
(d) buy into a number of smaller investment firms

5. What was Perelman planning to do when he took over Pantry Pride in 1985?
(a) to create positions for his sons and other family members.
(b) to use Pantry Pride and its income sheltering tax loss to acquire Revlon
(c) to run the business and get out of doing takeovers
(d) to make Pantry Pride attractive to other supermarkets

Short Answer Questions

1. What two large companies did Drexel underwrite bond issues for in a ten-day period?

2. What made a Wickes takeover so attractive to Sanford Sigoloff?

3. How did Perelman acquire Technicolor?

4. What was the average net worth of members of Milken's core group after being with him five years?

5. What was HITS?

(see the answer key)

This section contains 321 words (approx. 2 pages at 300 words per page) View a FREE sample