Janet Ludlow is preparing a report on U.S.-based manufacturers in the electric toothbrush industry and has gathered the information shown in Tables B and C. Ludlow€™s report concludes that the electric toothbrush industry is in the maturity (i.e., late) phase of its industry life cycle.
a. Select and justify three factors from Table B that support Ludlow€™s conclusion.
b. Select and justify three factors from Table C that refute Ludlow€™sconclusion.

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2004 2005 2006 2007 2008 2009 Return on equity Electric toothbrush industry index Market index 12.5% 10.2 12.0% 12.4 15.4% 14.6 19.6% 19.9 21.6% 20.4 21.6% 21.2 Average P/E Electric toothbrush industry index Market index 28.5x 10.2 23.2x 12.4 19.6x 14.6 18.7x 19.9 18.5x 18.1 16.2x 19.1 Dividend payout ratio Electric toothbrush industry index Market index 8.8% 39.2 8.0% 40.1 12.1% 38.6 12.1% 43.7 14.3% 41.8 39.1 Average dividend yield 0.6% Electric toothbrush industry index Market index 0.3% 3.8 0.3% 3.2 0.8% 2.3 0.7% 1.0% 2.2 Table B Ratios for electric toothbrush industry index and broad stock market index Industry Sales Gro per year over the next 3 years. Non-U.S. Markets -Some U.S. manufacturers are attempting to enter fast-growing non-U.S. markets, which remain largely unexploited. Mail Order Sales Some manufacturers have created a new niche in the industry by selling electric toothbrushes directly to customers through mail order sales for this industry segment are growing at 40% per year ry sales have grown at 1 5-20% per year in recent years and are expected to grow at 10-15% . U.S. Market Penetration-The current penetration rate in the United States is 60% of households and will be difficult to . Niche Markets-Some manufacturers are able to develop new, unexploited niche markets in the United States based on . Industry Consolidation-Several manufacturers have recently merged, and it is expected that consolidation in the . New Entrants New manufacturers continue to enter the market. increase Price Competition- Manufacturers compete fiercely on the basis of price, and price wars within the industry are common. company reputation, quality, and service. Industry will increase. Table c