View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What company did Wedvick find with a high investment-grade rating?
(a) Mutual of Omaha
(b) Clarendon, a Bermuda based reinsurance company
(c) Drexel
(d) Standard and Poors

2. What happened in April of 1987 while the investigation of Milken and Drexel was proceeding?
(a) Milken fled the country.
(b) The Predators' Ball was cancelled.
(c) The 1987 Predators' Ball was held.
(d) Milken tried to bribe an FBI undercover agent.

3. What was the result when many Drexel employees were not allowed into Milken's investment groups?
(a) Many were relieved that they would not have to invest.
(b) Milken made sure they did not know they were excluded.
(c) There was some degree of hostility.
(d) Most people did not care.

4. Why did the LTV situation not affect Drexel?
(a) The thrifts that collapsed and the defaults that occurred were not among Milken's customers
(b) Drexel used its own money to secure the LTV bonds.
(c) Drexel engineered a second buyout of LTV.
(d) Drexel pointed out the way LTV misused junk bonds.

5. What did Grant say the public was competing for at that point?
(a) for invitations to the Preditors' Ball
(b) for ownership in television stations and newspapers
(c) for more and more media attention
(d) for securities of high and higher yield - and poorer quality

6. What was the subject of debate in the mid 1980s during the M&A onslaught?
(a) the dangers of over growth
(b) the economic advantages of takeovers
(c) the cash flow of takeovers
(d) the legality of hostile takeovers

7. Who told Perelman that Revlon was not for sale?
(a) Michael Milken
(b) Tubby Burnham
(c) Carl Icahn
(d) Michael Bergerac

8. Who were some customers who received better deals from Milken?
(a) Murdock and Turner
(b) Oscar Wyatt and Coastal Corporation
(c) Perelman and Rocho
(d) Carl Icahn and Samuel Heyman

9. What were many of the money managers who started with Milken in the late 1970s doing in the 1980s?
(a) running their own funds
(b) staying with Milken because he was the best
(c) creating new ways of financing takeovers
(d) retiring and taking extended vacations

10. What did Milken do for people who had worked with him?
(a) gave them no competition contracts
(b) got rid of all of them
(c) contributed to their children's education
(d) helped people find jobs

11. When did the trading of Milken, Icahn, Posner and Boyd Jeffries, as well as others come under investigation?
(a) Right after the Preditors' Ball in 1987
(b) In late December 1986
(c) Long before the SEC began investigating Boesky
(d) Within minutes of the announcement of Boesky's plea bargain

12. Who made the contact for Wedvick with Kansa?
(a) Michael Milken
(b) Rodrigo Rocha
(c) Fred Joseph
(d) Carl Icahn

13. Why did people like Lawrence Coss of Green Tee Acceptance feel they were targets of hostile takeovers?
(a) because Milken did not like them
(b) because they wouldn't give in to Milken
(c) because they were not Jewish
(d) because they wanted more money for their companies

14. For what did Boesky claim a $5.3 million payment was made to Drexel?
(a) a loan to Drexel
(b) buying back bonds
(c) consulting
(d) investing in Drexel

15. What was beginning to happen during this time?
(a) Junk bonds were becoming poorer in quality and there were more bankruptcies and defaults
(b) People were making vast amounts of money trading junk bonds.
(c) Junk bonds began to disappear from the market.
(d) Unemployment shot up as a results of the mergers and acquisitions.

Short Answer Questions

1. What indicated the level of fear at Drexel during the investigations?

2. In what was Atlantic Capital involved?

3. What is it called when one investor holds stock for another investor and thus conceals the identity of the owner?

4. What was coming to an end?

5. What happened to the plan for moving to the Seven World Trade Center?

(see the answer keys)

This section contains 657 words (approx. 3 pages at 300 words per page) View a FREE sample