|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Part 2: Chapter 8, Icahn-TWA: From Greenmailer to Manager-Owner.
Multiple Choice Questions
1. To find more ways for their clients to make money, to what did Milken and Joseph turn their attention?
(a) entertainment properties
(b) offshore banking
(c) financial planning
(d) mergers and acquisitions
2. Why did Milken takeovers work?
(a) because of Milken's name associated with the takeover
(b) because of inside information
(c) because the raiders were backed by pools of capital
(d) because Milken personally supervised the takeovers
3. What did Milken offer this market segment?
(a) a hope for recovery
(b) ten cents on the dollar
(c) a protection from takeover
(d) a new kind of debt instrument
4. What was the goal of Nelson Peltz?
(a) to corner the Los Angeles real estate market
(b) to get into the airline business
(c) to compete with Milken
(d) to be a part of the Hollywood scene
5. What was the result of changes in the investment banking industry in the 1970s?
(a) Business concentrated in New York and Los Angeles.
(b) Firms became highly competitive and business moved around.
(c) Many new firms came into existence and were soon taken over.
(d) Regulations now made it harder to trade in junk bonds.
Short Answer Questions
1. What was Milken's goal by the early 1970s?
2. By 1981, what was Drexel responsible for?
3. When were the tax laws changed to minimize the benefits of stripping?
4. Why did Posner back out of the National Can deal?
5. Why was Drexel Burnham's investment banking business diminished by 1975?
This section contains 322 words
(approx. 2 pages at 300 words per page)