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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 troubled businesses, what was Drexel's unregistered exchange offer?
(a) creating additional Chinese paper
(b) trading under the table
(c) lowering their interest rates to businesses
(d) a way of using stocks or bonds to meet the interest obligations

2. What company was a proxy fight that Carl Ichan lost?
(a) Hammermill
(b) AB Electrolux
(c) the Times, Inc.
(d) Tappan

3. What is RICO?
(a) Mexican Stock Exchange
(b) The Bank of Brazil
(c) Racketeer Influenced Corrupt Organizations Act
(d) Reporting Interest In Company

4. Who dominated the market in junk bond funds from 1978 on?
(a) Morgan Investments
(b) Drexel
(c) Lehman Brothers
(d) Fidelity

5. What was the average net worth of members of Milken's core group after being with him five years?
(a) $10 million
(b) $12 million
(c) $20 million
(d) $5 million

Short Answer Questions

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

2. Why did Drexel want Carl Icahn as a client?

3. Who made the acquisition in the American Natural Resources (ANR) case?

4. When were the tax laws changed to minimize the benefits of stripping?

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

(see the answer key)

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