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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 12, Milken's Money Machine.

Multiple Choice Questions

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

2. When he heard on the radio about a change in options to buy stocks, what did Milken do that saved Drexel Burnham Lambert?
(a) made calls from pay phones
(b) turned around and went back
(c) cabeled DBL to warn them
(d) stopped in St. Louis and started buying

3. Why did the LTV situation not affect Drexel?
(a) Drexel used its own money to secure the LTV bonds.
(b) The thrifts that collapsed and the defaults that occurred were not among Milken's customers
(c) Drexel engineered a second buyout of LTV.
(d) Drexel pointed out the way LTV misused junk bonds.

4. What was the object of gaining control of a company and sell off many of its divisions?
(a) to be left with the best part of the company almost for free
(b) to bring the bought company down to manageable size
(c) to make money on the sales and then dump the parent company
(d) to avoid reporting where the purchas price was coming from

5. Who was another player involved in the National Can takeover attempt?
(a) Victor Posner
(b) Lowell Milken
(c) Gerald Guteman
(d) Oscar Wyatt

Short Answer Questions

1. Who are two examples of Milken clients who became quite wealthy?

2. What did Carl Ichan become known as?

3. Why was Milken so interested in low grade bonds?

4. Eventually, what did First Federal and Columbia Savings become?

5. What was another company Wedvick used in his investment scheme?

(see the answer key)

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