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GKN report docx

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Table of Contents
Executive Summary ........................................................................................................................ 2
1. Discount Rates & Capital Structure ..................................................................................... 3
1.1 Calculation of WACC for the last 5 years ......................................................................... 3
2. Dividend Policy ................................................................................................................... 7
3. Valuation .............................................................................................................................. 8
4. Corporate Life Cycle.......................................................................................................... 10
Growth ................................................................................................................................... 10
Maturity ................................................................................................................................. 11
Decline ................................................................................................................................... 11
5. Shareholder ........................................................................................................................ 13
Reference ...................................................................................................................................... 14

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Executive Summary
This report was written to an investor to consider investing in the GKN which I have selected
listing on the London stock Exchange. GKN Aerospace is the world's driving multi-innovation
level 1 aviation provider the adjusting over 90% of the world's flying machine and motor
makers. GKN Limited was established in 2001 and is headquartered in Redditch, the United
Kingdom. As of April 26, 2018, GKN plc, Works as an auxiliary of Melrose Industries PLC. In
this report I have cover the following areas such as discount and the capital structure of GKN,
dividend policy, valuation, corporate life cycle and the shareholders of GKN. In the section of
discount rate and the capital structure to analyze how much more debt company employed in
2018 and more over it is necessary or not for the GKN to change its strategy in the capital
structure. In the section of dividend policy, GKN paid their dividend for the full year which is
increased by 9.5% in current year. It is also examined that in the consecutive 2 years of GKN
payout ratio is still lower than the level between 70 to 80%. The GKN using both static valuation
multiples and an absolute valuation techniques to value their equity of share and moreover in
both the cases the parameters are justified. It is also examine that the change in GKN’s annual
revenues seems to be coming at the expense of earnings. Broadly speaking when referring to the
corporate life-cycle, I think about GKN following different strategies in different stages of life
cycle to deal with a variety of constraints and challenges. GKN shareholders will keep the
potential estimation of entire resources of GKN.

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Table of Contents Executive Summary ........................................................................................................................ 2 1. Discount Rates & Capital Structure ..................................................................................... 3 1.1 Calculation of WACC for the last 5 years ......................................................................... 3 2. Dividend Policy ................................................................................................................... 7 3. Valuation .............................................................................................................................. 8 4. Corporate Life Cycle.......................................................................................................... 10 Growth ................................................................................................................................... 10 Maturity ................................................................................................................................. 11 Decline ................................................................................................................................... 11 5. Shareholder ........................................................................................................................ 13 Reference ................................................................................................ ...
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