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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 4, Merge with Mike.

Multiple Choice Questions

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

2. What was the address of the new building in L. A.?
(a) Sunset and Vine
(b) Avenue of the Stars in Century City
(c) Rodeo Drive and Wilshire
(d) Hollywood and Vine

3. Where did Milken and his wife buy a house?
(a) Santa Monica
(b) Encino
(c) Beverley Hills
(d) San Clemente

4. With whom was the firm of Drexel Burnham Lambert identified by the late 1970s?
(a) Ronald Reagan
(b) Michael Milken
(c) Tubby Burnham
(d) Fred Joseph

5. Why was Drexel Burnham's investment banking business diminished by 1975?
(a) It had nothing to sell.
(b) Bond prices had risen too high.
(c) The bigger firms were copying its business model.
(d) Most of the major customers had fled.

Short Answer Questions

1. What was one thing Lowell Milken did for the company?

2. What became the name of bonds that come into being during highly leveraged takeovers?

3. Why did Drexel Burnham Lambert agree to let Milken move his operation at a cost of millions of dollars?

4. To troubled businesses, what was Drexel's unregistered exchange offer?

5. Keeping New York office hours, at what time did they begin work in L. A.?

(see the answer key)

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