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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What did Grant continue to predict?
(a) a major acquisition that would stagger the mind
(b) the end of leveraged buyouts when everything good was taken over
(c) that M&As would revitalize the national economy
(d) a gradual shift from vigilance to recklessness in lending and borrowing

2. What was the subject of debate in the mid 1980s during the M&A onslaught?
(a) the cash flow of takeovers
(b) the economic advantages of takeovers
(c) the dangers of over growth
(d) the legality of hostile takeovers

3. What did Bergerac's associates tell him about Perelman?
(a) that Perelman knew all about hostile takeovers
(b) that Perelman was known as a blowhard
(c) that Perelman would use illegal means to take Revlon over
(d) that Perelman had never done a hostile takeover

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

5. What had been Perelman's greatest acquisition before Revlon?
(a) Cinemascope
(b) NBC
(c) Todd-a-o
(d) Technicolor

Short Answer Questions

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

2. For whose benefit were most of the investment partnerships?

3. What did the 1985 President's Council of Economic Advisers report on the issue of M&A conclude?

4. Who at Drexel became a problem because of a lawsuit by Beverly Hills Savings and Loan?

5. Why was the partner Groupe Bruxelles Lambert S.A. not happy with Drexel and trying to take it over?

Short Essay Questions

1. State some of the details about Milken's being investigated for insider trading.

2. What evolved after many customers first dealt with Milken?

3. What were some of Perelman's activities after acquiring Revlon?

4. What was James Grant's position on where things would eventually lead in the credit cycle?

5. How did Milken's power in the industry benefit Drexel?

6. What were the results of the ongoing investigations of Drexel and Milken?

7. Tell something of the anticipation associated with SEC and FBI investigations into Drexel and Milken.

8. How did Peer Wedvick satisfy his need for an institution with a high investment-grade rating?

9. Describe the attempts to prevent Perelman's acquisition of Revlon.

10. Describe the reason for Wedvick's problems with Atlantic Capital.

(see the answer keys)

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