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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 was Samuel Heyman able to get from Milken?
(a) an office suite in the drexel building
(b) an investment-grade rate when he purchased GAF
(c) names of Drexel's best investors
(d) 100% capital from drexel

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

3. What often benefited Drexel in dealing with its clients?
(a) equity from the deals they took part in
(b) inside information
(c) positive publicity
(d) leads for new clients

4. In many ways, what became the role of Milken?
(a) the role of enforcer
(b) the rold of peacemaker
(c) the role of enquirer
(d) the role of adviser

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

Short Answer Questions

1. What was the subject of debate in the mid 1980s during the M&A onslaught?

2. What was the largest bankruptcy in 1986?

3. What did Milken do for people who had worked with him?

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

5. Who were some customers who received better deals from Milken?

Short Essay Questions

1. Why did Sanford Sigoloff switch from Salomon Brothers to Drexel when he was acquiring Wickes?

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

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

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

5. How was fear affecting Drexel during the investigations?

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

7. What were some of the detractors of LTOs saying about the practice in the 1980s?

8. How did Milken disagree with the idea that liquidity was scarce?

9. Why were other investment firms not as successful as Drexel?

10. How was favoritism shown at Drexel?

(see the answer keys)

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