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

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

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

4. What are two other notable takeovers done by Perelman after Revlon?
(a) NBC-TV and Hertz Rent a Car
(b) Hearst Corporation and Ford Motor Company
(c) CPC International and Transworld Corporation
(d) Warner Brothers Studios and Coca Cola

5. What did the Revlon takeover prove?
(a) that Revlon stock was way overvalued
(b) the power of Milken and junk bond financing
(c) that Perelman knew nothing about hostile takeovers
(d) that women will buy Revlon no matter who owns the company

Short Answer Questions

1. Who were some customers who received better deals from Milken?

2. Why did the stripped bonds result in large tax benefits?

3. To Drexel, what did certain concessions to clients mean?

4. What did Milken refuse to have in the Drexel annual report?

5. Why was the Revlon takeover a landmark case for Perelman and Drexel?

(see the answer key)

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