What is the expected return from buying a novartis share

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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?

Reference no: EM131490708

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