View a FREE sample

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. What was the goal of Nelson Peltz?
(a) to get into the airline business
(b) to be a part of the Hollywood scene
(c) to corner the Los Angeles real estate market
(d) to compete with Milken

2. What did Milken offer this market segment?
(a) a new kind of debt instrument
(b) a protection from takeover
(c) a hope for recovery
(d) ten cents on the dollar

3. By 1983, what was the worth of Drexel's junk bond business?
(a) $4.690 billion
(b) $40 billion
(c) $2 billion
(d) $460 billion

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

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

Short Answer Questions

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

2. What commission did Drexel make on these funds?

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

4. What was Fred Joseph's strategy for hiring employees for Drexel?

5. What was Milken's problem with back office people at Drexel?

(see the answer key)

This section contains 297 words (approx. 1 page at 300 words per page) View a FREE sample