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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 14, Sovereign Privileges.

Multiple Choice Questions

1. Why did Milken takeovers work?
(a) because the raiders were backed by pools of capital
(b) because of inside information
(c) because Milken personally supervised the takeovers
(d) because of Milken's name associated with the takeover

2. What did Grant think about the junk bond business?
(a) that Wall Street had gone too far with junk bonds
(b) that junk bonds was the perfect vehicle for M&A
(c) that it was too heavily regulated
(d) the Wall Street was too slow in accepting them

3. What was Perelman planning to do when he took over Pantry Pride in 1985?
(a) to make Pantry Pride attractive to other supermarkets
(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 create positions for his sons and other family members.

4. Why was Revlon attracting raiders?
(a) Some were trying to take advantage of the death of Charles Revson.
(b) The company's stock was trading below its breakup value.
(c) Its stock was steadily growing.
(d) The company was getting larger every year.

5. What did Milken demand from everyone around him?
(a) more money for his services
(b) things done the way he wanted them done
(c) that they call him Mr. Milken
(d) any information they overheard

Short Answer Questions

1. What did Carl Ichan become known as?

2. What was Milken's goal by the early 1970s?

3. When inflation raised the value of assets but not stock prices, what was the result?

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

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

(see the answer key)

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