4.) Suppose you believe that Entergy Corp.’s 6.0 percent dividend growth rate will only hold5 years.

4.) Suppose you believe that Entergy Corp.’s 6.0 percent dividend growth rate will only hold5 years. After that, the dividend growth rate will return to Entergy Corp.’s historical 10-yearaverage of 7.5 percent. Note that D6 = D5 x 1.075. (Use to answer questions 4-8) Current stock yearly dividend in 2002 is $1.60a.) What was the value of Entergy Corp.’s stock on January 1, 2003 (the end of 2002), if the required rate of return is 13.5 percent?