View a FREE sample

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

Multiple Choice Questions

1. 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 presence on Wall Street
(d) Drexel's plans for selling the firm

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

3. How were some people able to beat Milken on deals?
(a) by offering better prices
(b) by using illlegal means
(c) by attacking Milken
(d) by hiring better salesmen

4. What concept did Milken continue to support?
(a) the switch to high-yield securities
(b) the cautions of using junk bonds
(c) the owner-manager of businesses
(d) the legality of takeovers

5. Why did none of the thirty bills introduced covering takeovers in 1984-85 pass?
(a) Many politicians who received large contributions attended the Predators' Ball in 1986.
(b) The Congress did not think it was an important matter.
(c) Drexel took leading politicians on a vacation to the Bahamas.
(d) Congress was waiting for a supreme court decision.

6. Who was James Grant?
(a) the chief of the SEC
(b) the head of Grant Investment Bank
(c) the author of the Grant Bill in Congress
(d) the editor of Grant's Interest Rate Observer

7. What did Kansa and Clarendon both have that Wedvick needed?
(a) excess capital
(b) corrupt employees
(c) AA rating
(d) no supervision

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

9. What did Milken take personally with his clients?
(a) if they refused to attend the Predator's Ball
(b) if they made more money than he did
(c) If they did business with someone else
(d) if they divulged company secrets

10. Why was the Technicolor acquisition so successful?
(a) selling it to Kodak at a great profit
(b) adding R&D to come up with new products
(c) selling off parts and putting the profits into the main company
(d) acquiring it at a time when movies were reviving

11. What happened to the blue-chip investors Drexel was trying to attack?
(a) They rallied in support of Drexel.
(b) They did not stay with the firm.
(c) They took a wait and see stance.
(d) They kept coming for Drexel help anyway.

12. 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) retiring and taking extended vacations
(d) creating new ways of financing takeovers

13. Why was the partner Groupe Bruxelles Lambert S.A. not happy with Drexel and trying to take it over?
(a) the falling stock price of drexel
(b) the Drexel practice of not paying dividends
(c) the Drexel continued support of Mike Milken
(d) Drexel's secret bookkeeping

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

15. 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) Long before the SEC began investigating Boesky
(c) Within minutes of the announcement of Boesky's plea bargain
(d) In late December 1986

Short Answer Questions

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

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

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

4. Why did the LTV situation not affect Drexel?

5. What was Drexel able to do that made it so successful?

(see the answer keys)

This section contains 680 words (approx. 3 pages at 300 words per page) View a FREE sample