Suppose you are given the following historical data for Allied Aerospace Ltd.:

Year	EPS	Dividend per share
2017	$2	$1.20
2018	$4	$2.40
2019	$2	$1.20
2020	$4	$2.40

Allied received a new long-term government contract which guarantees EPS of $2.50 a year for the next 99 years. The cost of capital for Allied is 8%. Assuming the previous dividend payout ratio, using the constant dividend growth model, the stock price of Allied Aerospace is _____ .

options:

	$31.25
	$18.75
	$15.63
	$37.50