Coca-Cola Corporation has indicated that it plans to sell a portion of Coca-Cola Beverages Africa bottling business via an initial public offering. See the article on next page entitled “Coca-Cola...

Coca-Cola Corporation has indicated that it plans to sell a portion of Coca-Cola Beverages Africa bottling business via an initial public offering. See the article on next page entitled “Coca-Cola revenue and sales bubble up” from the National Post. Use international economic and financial theory to answer the following questions:

a. What is the company’s justification for the separate stock market listing? What are the potential advantages (there are several) of the separate listing for the company?

b. What responsibilities and costs come with the separate listing?

c. Identify and explain the new political risks that come with the separate listing.

d. In your opinion, is the company justified in spinning off its African unit? Why or why not?






. Coca-Cola Corporation has indicated that it plans to sell a portion of Coca-Cola Beverages Africa bottling business via an initial public offering. See the article on next page entitled “Coca-Cola revenue and sales bubble up” from the National Post. Use international economic and financial theory to answer the following questions: a. What is the company’s justification for the separate stock market listing? What are the potential advantages (there are several) of the separate listing for the company? b. What responsibilities and costs come with the separate listing? c. Identify and explain the new political risks that come with the separate listing. d. In your opinion, is the company justified in spinning off its African unit? Why or why not?