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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) financial planning
(b) entertainment properties
(c) mergers and acquisitions
(d) offshore banking

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

3. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?
(a) consideration of all ideas, even the far-out and the flamboyant, instead of the conservative
(b) pirating talent from some of the biggest firms on Wall Street
(c) gathering inside information to take back to Los Angeles
(d) to undermine Milken and take over control of the Department

4. How much money and how fast did Drexel raise for the Phillips Petroleum proxy fight?
(a) 2 billion in one month
(b) $1.5 billion in forty-eight hours
(c) a half billion in three days
(d) $10 million in a week

5. Why did Drexel want Carl Icahn as a client?
(a) Icahn had liquid capital in offshore banks.
(b) He was a risk taker that would make money even if he failed.
(c) Most other firms wouldn't handle him and he would be willing to pay the price to the investors of junk bonds.
(d) Icahn would not use junk bonds to finance his hostile takeovers.

Short Answer Questions

1. What was Drexel's only real competition by the 1980s?

2. What was the Wall Street attitude toward low grade bonds at the time Milken started trading in them?

3. Why was Drexel Burnham's investment banking business diminished by 1975?

4. What is it called when someone holds a financial advantage over a company to force a sale?

5. What was the estate they bought?

(see the answer key)

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