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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 company was a proxy fight that Carl Ichan lost?
(a) the Times, Inc.
(b) Tappan
(c) AB Electrolux
(d) Hammermill

2. What was the estate they bought?
(a) the Pickford estate
(b) the Jackie Coogan estate
(c) the Clark Gable-Carole Lombard estate
(d) the Judy Garland estate

3. What were Milken's results the first year in his new position at Drexel Burnham?
(a) 100% profit
(b) Break even
(c) 10% profit
(d) Fewer clients

4. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?
(a) gathering inside information to take back to Los Angeles
(b) consideration of all ideas, even the far-out and the flamboyant, instead of the conservative
(c) to undermine Milken and take over control of the Department
(d) pirating talent from some of the biggest firms on Wall Street

5. What do raiders look for in companies to take over?
(a) public good will, which continues after the takeover
(b) cash flow, which is one of the most important items in LBOs
(c) new research and development projects
(d) companies saddled with heavy debt

Short Answer Questions

1. What was the result of changes in the investment banking industry in the 1970s?

2. What was a cause of the market crash of 1974?

3. What did Milken's involvement in this business do for him personally?

4. What did Milken and Joseph devise to keep business flowing during the recession?

5. Why was Milken so interested in low grade bonds?

Short Essay Questions

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

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

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

4. Describe Drexel's part in the National Can hostile takeover.

5. Explain Milken's relationship with his staff.

6. Who was Carl Icahn and how did he get into the hostile takeover business?

7. Explain why Drexel did not become a publicly-traded company?

8. How did HITS come about and what was it?

9. Write about the relationship between Milken and Steve Wynn of the gambling industry.

10. How did Drexel go about creating the Air Fund in an effort to get into M&A?

(see the answer keys)

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