|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. What commission did Drexel make on these funds?
(a) one percent
(b) three quarters of a percent
(c) seven eighths of a percent
(d) five eighths of a percent
2. What are REITs?
(a) really extended investment trials
(b) raw energy investment tables
(c) rare employee investment tallies
(d) real estate instruments like mortgages
3. What was it about Milken that impressed his clients?
(a) his knowledge and memory for details about every bond there was.
(b) his inside information about the junk bond companies
(c) his willingness to bargain when he sold them junk bonds
(d) his connections with politicians and movie stars
4. What advantage did Milken's kind of debt offer?
(a) It did not tie up cash the way loan repayments did.
(b) It was separate from bank loans and the bondholder could sell his bonds whenever he wanted
(c) It was done under the table so the banks did not know about it.
(d) It was easier to use than getting a bank loan.
5. To find more ways for their clients to make money, to what did Milken and Joseph turn their attention?
(a) financial planning
(b) mergers and acquisitions
(c) offshore banking
(d) entertainment properties
Short Answer Questions
1. How did the firm now have equity stakes in most of the companies that it financed?
2. What does FIFI stand for?
3. What were Milken's results the first year in his new position at Drexel Burnham?
4. Who are two examples of Milken clients who became quite wealthy?
5. Where did Milken want to move his bond operation unit in 1978?
Short Essay Questions
1. Explain why Milken was the main subject of the Barbizon Plaza meeting.
2. What happened that started the Merger & Acquisition craze in the late 1970s and early 1980s?
3. Give examples of people other than his staff who become quite wealthy following Milken's direction.
4. What were some complications of the move to Century city for Drexel?
5. How did Milken and Joseph create diversification for high-yield funds?
6. Discuss Carl Icahn's expertise in proxy fights.
7. Describe the National Can Company takeover.
8. Tell something about Fred Joseph and how he became known at Drexel.
9. What was capturing Milken's interest in 1977?
10. Explain why Milken wanted to move his operation to Los Angeles.
This section contains 1,120 words
(approx. 4 pages at 300 words per page)