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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 15, Boesky Day.

Multiple Choice Questions

1. How much money and how fast did Drexel raise for the Phillips Petroleum proxy fight?
(a) 2 billion in one month
(b) $1.5 billion in forty-eight hours
(c) a half billion in three days
(d) $10 million in a week

2. How was Drexel being spoken of after the success of so many hostile takeovers?
(a) as the devil in disguise
(b) as near criminals skirting the law
(c) as the investment firm of the future
(d) a god that could do whatever it wanted in the niche it was in

3. Why did Drexel remain a privately-held company?
(a) Milken could then retain his need for secrecy.
(b) They did not want outsiders to get in on their business.
(c) Joseph refused to allow it to happen.
(d) It was too much of a temptation for a hostile takeover.

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

5. What is it called when someone holds a financial advantage over a company to force a sale?
(a) hijacking
(b) greenmail
(c) proxy fighting
(d) investment banking

Short Answer Questions

1. How did Milken decide to help Peltz?

2. What kind of business did Milken's Belvedere Securities do?

3. Why did the LTV situation not affect Drexel?

4. Why did Milken takeovers work?

5. What influenced Milken to become interested in low grade bond portfolios?

(see the answer key)

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