View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. How did Perelman acquire Technicolor?
(a) buying on credit
(b) directing a hostile takeover
(c) paying full price
(d) selling junk bonds

2. What could happen to Drexel with so much power vested in one man?
(a) possible collapse of the company
(b) possible loss if anything happened to him
(c) possible take over of the company
(d) possible abuse of power

3. Why did people like Lawrence Coss of Green Tee Acceptance feel they were targets of hostile takeovers?
(a) because they wanted more money for their companies
(b) because Milken did not like them
(c) because they were not Jewish
(d) because they wouldn't give in to Milken

4. What was the largest bankruptcy in 1986?
(a) Metromedia
(b) Revlon
(c) TWA
(d) LTV Corporation

5. What did Grant say the public was competing for at that point?
(a) for invitations to the Preditors' Ball
(b) for securities of high and higher yield - and poorer quality
(c) for ownership in television stations and newspapers
(d) for more and more media attention

6. What happened to the blue-chip investors Drexel was trying to attack?
(a) They did not stay with the firm.
(b) They kept coming for Drexel help anyway.
(c) They took a wait and see stance.
(d) They rallied in support of Drexel.

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

8. What was Drexel able to do that made it so successful?
(a) to get around banking laws
(b) to place the unsecured debt that banks wouldn't touch
(c) to hear about acquisitions before anyone else
(d) to avoid reporting many of the transactions

9. What did the 1985 President's Council of Economic Advisers report on the issue of M&A conclude?
(a) that they were very beneficial for the economy
(b) that M&A was written into the Constitution
(c) that it was too small a matter to be concerned with
(d) that more study needed to be done

10. How did the investigation appear at first?
(a) It seemed flimsy and not much to worry about.
(b) It seemed impossible to find all the needed evidence.
(c) It seemed to involve Wall Street figures other than Milken and Drexel.
(d) It seemed to be only aimed at Milken.

11. What indicated the level of fear at Drexel during the investigations?
(a) All bonuses were cancelled.
(b) Many employees were leaving the firm.
(c) Drexel began firing employees.
(d) Joseph resigned as CEO.

12. What was one of the most important factors in the leveraged buyout deals?
(a) the zero coupon bond
(b) support of key Congressmen
(c) knowing Michael Milken
(d) loopholes in the banking laws

13. Why did Atlantic Capital have to stop selling Wedvick's contracts?
(a) Wedvick's contracts became worthless.
(b) It became over-extended and faced bankruptcy.
(c) Drexel bought them out.
(d) Pressure on Kansa came from Standard and Poor's and a downgrade to an A-rating.

14. What happened to the plan for moving to the Seven World Trade Center?
(a) It was held up by the FBI.
(b) It was abandoned.
(c) It decreased the number of floors.
(d) It went ahead.

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

Short Answer Questions

1. What happened in April of 1987 while the investigation of Milken and Drexel was proceeding?

2. Where was most of Drexel's money made through investment partnerships?

3. Who told Perelman that Revlon was not for sale?

4. What concept did Milken continue to support?

5. In what was Atlantic Capital involved?

(see the answer keys)

This section contains 624 words (approx. 3 pages at 300 words per page) View a FREE sample