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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What are REITs?
(a) raw energy investment tables
(b) really extended investment trials
(c) real estate instruments like mortgages
(d) rare employee investment tallies

2. By 1981, what was Drexel responsible for?
(a) moving Wall Street to Los Angeles
(b) leading the field in high interest bonds
(c) almost all of the junk bonds in the market
(d) engineering most of the hostile takeovers

3. 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 swapping Chinese paper for stock in the companies
(d) by demanding larger stakes in the companies

4. What is it called when someone holds a financial advantage over a company to force a sale?
(a) investment banking
(b) proxy fighting
(c) greenmail
(d) hijacking

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

Short Answer Questions

1. What kind of business did Milken's Belvedere Securities do?

2. What company was a proxy fight that Carl Ichan lost?

3. Why did the new Drexel Burnham company give Milken a $2 million position?

4. What advantage did Milken's kind of debt offer?

5. What is a proxy fight?

Short Essay Questions

1. What were some complications of the move to Century city for Drexel?

2. How did Marshall Field attempt to fight Carl Icahn?

3. Explain why Milken was the main subject of the Barbizon Plaza meeting.

4. Describe the National Can Company takeover.

5. Explain some of Drexel's problem clients in the early 1980s.

6. Why was Milken not employed by some of the biggest Wall Street firms?

7. What was the subject of the meeting at the Barbizon Plaza in New York held by Fred Joseph?

8. Describe how Michael Milken is introduced in the book.

9. Why did Thomas Spiegel come under investigation by the FHLBB?

10. What were some of Carl Icahn's problems after his successful TWA takeover?

(see the answer keys)

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