View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 17, The Humbling.

Multiple Choice Questions

1. What was Milken's goal by the early 1970s?
(a) He wanted low-yield bonds to be its own specialty.
(b) He wanted to own Drexel Burnham.
(c) He wanted to move into high-yield bonds.
(d) He wanted to have his own firm.

2. What was beginning to happen during this time?
(a) People were making vast amounts of money trading junk bonds.
(b) Junk bonds began to disappear from the market.
(c) Unemployment shot up as a results of the mergers and acquisitions.
(d) Junk bonds were becoming poorer in quality and there were more bankruptcies and defaults

3. Why did Atlantic Capital have to stop selling Wedvick's contracts?
(a) Pressure on Kansa came from Standard and Poor's and a downgrade to an A-rating.
(b) Drexel bought them out.
(c) It became over-extended and faced bankruptcy.
(d) Wedvick's contracts became worthless.

4. 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) Only very large companies could make mergers and accquistions.
(d) More and more companies were burdened with higher taxes.

5. What was coming to an end?
(a) Milken's anonymity
(b) Milken's ability to raise millions of dollars in a few days
(c) Drexel's presence on Wall Street
(d) Drexel's plans for selling the firm

Short Answer Questions

1. Why did the stripped bonds result in large tax benefits?

2. What did Milken demand from everyone around him?

3. With whom was the firm of Drexel Burnham Lambert identified by the late 1970s?

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

5. How did Drexel get around the law and continue the takeovers?

(see the answer key)

This section contains 378 words (approx. 2 pages at 300 words per page) View a FREE sample