DEF Inc. is expected to pay dividends of $1, $1.50, and $2 during the next three years. After that, dividends are expected to grow at 5% per year. If the market demands a return of 11%, what should be the price of DEF in three years?

Analysts expect PQR Inc. to earn $1.15 per share this year. The stock is currently trading at $33.35. When PQR surprises analysts by outperforming by $0.30 per share, by how much should the stock price increase? (Assume the P/E ratio will remain constant.)