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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. Why did Milken takeovers work?
(a) because the raiders were backed by pools of capital
(b) because Milken personally supervised the takeovers
(c) because of Milken's name associated with the takeover
(d) because of inside information

2. When were the tax laws changed to minimize the benefits of stripping?
(a) In 1989
(b) In 1990
(c) In 1982
(d) In 1991

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

4. What was the result of changes in the investment banking industry in the 1970s?
(a) Business concentrated in New York and Los Angeles.
(b) Many new firms came into existence and were soon taken over.
(c) Firms became highly competitive and business moved around.
(d) Regulations now made it harder to trade in junk bonds.

5. How did the firm now have equity stakes in most of the companies that it financed?
(a) by using the firm's capital to finance the companies
(b) by buying stakes in many companies instead of financing them
(c) by demanding larger stakes in the companies
(d) by swapping Chinese paper for stock in the companies

Short Answer Questions

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

2. Who informed the SEC that he was attempting to gain control of Triagle Acquisition Corporation?

3. Eventually, what did First Federal and Columbia Savings become?

4. Who was behind the success of both First Executive and Columbia Savings?

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

(see the answer key)

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