View a FREE sample

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

Multiple Choice Questions

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

2. Who did Joseph hire with a three-year contract calling for $3 million per year plus extras?
(a) Antonio Gebauer
(b) Dennis Levine
(c) Robert Salsbury
(d) Martin Siegel

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

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

5. What is it called when one investor holds stock for another investor and thus conceals the identity of the owner?
(a) disguising stock
(b) shielding stock
(c) parking stock
(d) covering stock

6. Why did Drexel become the target of both an SEC and federal grand jury investigations?
(a) Milken and Drexel began making off-shore deposits.
(b) Milken and Drexel refused to cooperate with the investigation.
(c) Milken and Drexel immediately hired high powered lawyers.
(d) Milken and Drexel had underwritten quite a bit of Boesky debt.

7. By the fall of 1989, what were many people doing?
(a) changing the rules for junk bonds
(b) junk bond financing
(c) complaining about Milken
(d) getting rid of junk bonds

8. Why did Milken hold a mini-Predators' Ball in Tokyo?
(a) He was looking at getting into foreign markets.
(b) He was invited by Japanese businessmen.
(c) He did things like that on a whim.
(d) The Balls in Los Angeles were drawing too much publicity.

9. What did Grant continue to predict?
(a) that M&As would revitalize the national economy
(b) a gradual shift from vigilance to recklessness in lending and borrowing
(c) the end of leveraged buyouts when everything good was taken over
(d) a major acquisition that would stagger the mind

10. What was coming to an end?
(a) Milken's anonymity
(b) Milken's ability to raise millions of dollars in a few days
(c) Drexel's plans for selling the firm
(d) Drexel's presence on Wall Street

11. What did Milken want at work?
(a) fancy titles and gold letterhead
(b) his photo in the annual report
(c) distance between him and the powers that be at Drexel
(d) to run the Drexel firm

12. What did Milken demand from everyone around him?
(a) that they call him Mr. Milken
(b) more money for his services
(c) any information they overheard
(d) things done the way he wanted them done

13. In many ways, what became the role of Milken?
(a) the rold of peacemaker
(b) the role of enforcer
(c) the role of adviser
(d) the role of enquirer

14. For whose benefit were most of the investment partnerships?
(a) for the corporate employees
(b) for Milken
(c) for the Drexel firm
(d) for potential clients

15. What did Bergerac's associates tell him about Perelman?
(a) that Perelman was known as a blowhard
(b) that Perelman had never done a hostile takeover
(c) that Perelman knew all about hostile takeovers
(d) that Perelman would use illegal means to take Revlon over

Short Answer Questions

1. Why did none of the thirty bills introduced covering takeovers in 1984-85 pass?

2. When did Drexel begin dealing based on insider information?

3. Why did the LTV situation not affect Drexel?

4. How did the investigation appear at first?

5. What made Drexel's troubles even worse after Boesky Day?

(see the answer keys)

This section contains 721 words (approx. 3 pages at 300 words per page) View a FREE sample