... GrowthProspects and Cash Cow, each of which had earnings per share of $5. Growth Prospects rein-vested 60 % of its earnings in prospects with an ROE of 15%, while Cash Cow paid out all of its earnings ... earnings to the business cycle. Firstis the sensitivity of sales. Necessities will show little sensitivity to business conditions. Ex-amples of industries in this group are food, drugs, and ... competitors, pricepressure from substitute products, the bargaining power of suppliers, and the bargaining power of buyers.Threat of entry New entrants to an industry put pressure on price and profits....