View a FREE sample

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

Multiple Choice Questions

1. What was the result in 1974 when International Nickel Company raided ESB?
(a) the beginning of many hostile raids
(b) no one was surprised
(c) Milken denounced the deal
(d) junk bonds became passe

2. What did Joseph need to achieve his goal of making Drexel a world-class institution?
(a) to stop dealing in junk bonds
(b) to mastermind an M&A for Drexel
(c) to get into M&A
(d) to learn the definition of leveraged buyouts

3. What was the average net worth of members of Milken's core group after being with him five years?
(a) $12 million
(b) $10 million
(c) $5 million
(d) $20 million

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

5. Who dominated the market in junk bond funds from 1978 on?
(a) Lehman Brothers
(b) Morgan Investments
(c) Fidelity
(d) Drexel

Short Answer Questions

1. When were the tax laws changed to minimize the benefits of stripping?

2. What did Milken refuse to have in the Drexel annual report?

3. Where did Milken want to move his bond operation unit in 1978?

4. What does FIFI stand for?

5. Why did Ichan and Kingsley limit themselves to 4.9% of shares in companies?

Short Essay Questions

1. What were some of Carl Icahn's problems after his successful TWA takeover?

2. How did Milken help Drexel on his drive from New York to California?

3. Explain Milken's relationship with his staff.

4. Explain the beginnings of blind pools arranged by Milken.

5. How did they get around the SEC bond registration rules?

6. Why was Milken not employed by some of the biggest Wall Street firms?

7. How did Drexel go about creating the Air Fund in an effort to get into M&A?

8. Describe the National Can Company takeover.

9. Describe Drexel's part in the National Can hostile takeover.

10. How did Milken begin building his fortune?

(see the answer keys)

This section contains 1,077 words (approx. 4 pages at 300 words per page) View a FREE sample