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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. Who was Dr. Feelgood of Drexel?
(a) Fred Joseph
(b) Tubby Burnham
(c) Michael Milken
(d) Lowell Milken

2. What was the result when rules on M&A were finally adopted by the Congress?
(a) They made it almost impossible for raiders to operate.
(b) They put everyone out of business.
(c) They made it impossible to sell parts of a company to pay for the acquisition.
(d) They were easy for the investment banking firms to get around.

3. Why was Milken so interested in low grade bonds?
(a) he liked to gamble big time
(b) that was all he could afford
(c) they were the only ones he really understood
(d) equity offerings were not an option for the Drexel Burnham market

4. What is it called when a firm decides to commit its own capital toward a takeover?
(a) piggybacking
(b) bridge financing
(c) marginal financing
(d) highway financing

5. On May 12, 1986, who was charged with insider trading and agreed to cooperate with the government?
(a) Fred Joseph
(b) Dennis Levine
(c) Car Icahn
(d) Lowell Milken

Short Answer Questions

1. What was the Milken philosophy?

2. To find more ways for their clients to make money, to what did Milken and Joseph turn their attention?

3. What commission did Drexel make on these funds?

4. Why were Milken's imitators not as successful as he was?

5. When inflation raised the value of assets but not stock prices, what was the result?

(see the answer key)

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