you b. What is the forecast of earnings for 2014 that is implicit in the market price? E7.4. Expected Returns for Different Growth Rates (Easy) A firm whose shares are trading at 2.2 times book value is forecasted to earn a return on book value of 15 percent next year. Calculate the expected return to buying this stock for the following forecasts of residual earnings growth after the forward year: 3 percent, 4 per- cent, and 6 percent. What is the expected return if no growth is expected? ime? owth