|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 10, 'Drexel is like a God'.
Multiple Choice Questions
1. On May 12, 1986, who was charged with insider trading and agreed to cooperate with the government?
(a) Dennis Levine
(b) Fred Joseph
(c) Car Icahn
(d) Lowell Milken
2. For whom did Milken do trading?
(a) only for himself now because he was making so much money
(b) just for Drexel Burnham Lambert because of the volume of work
(c) only for family and friends to keep attention away from himself
(d) not only for customers, but also his own account and his group's account
3. What was the result of Tax Law reform in 1981?
(a) The increase in cash flow put companies in a better position to service debt.
(b) Big corporations faced running out of money.
(c) More and more companies were burdened with higher taxes.
(d) Only very large companies could make mergers and accquistions.
4. Where did most of the money come from when Icahn actually acquired ACF, a railroad car leasing company?
(a) Much of the purchase price came from the sale of some of the company's divisions.
(b) Ichan got the money from his uncle.
(c) Ichan sold all of his Milken junk bonds.
(d) Milken financed much of the price.
5. Why was Drexel Burnham's investment banking business diminished by 1975?
(a) The bigger firms were copying its business model.
(b) It had nothing to sell.
(c) Most of the major customers had fled.
(d) Bond prices had risen too high.
Short Answer Questions
1. By 1981, what was Drexel responsible for?
2. What was the result when rules on M&A were finally adopted by the Congress?
3. What was the result in 1974 when International Nickel Company raided ESB?
4. What was Drexel's only real competition by the 1980s?
5. Why were Milken's imitators not as successful as he was?
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