Question: Expected Return from buying Novartis (Easy) Novartis, the pharmaceutical firm, traded at a price-to-book ratio of2. l in May 2011. It is forecasted to have a return on common equity (ROCE) of 19 percent for 2011. What is the expected return from buying a Novartis share if you forecast that residual earnings will grow at 4 percent per year in the future?