As a Security Analyst for Market Masters, Inc $\quad$ $\quad$

question 28

Essay

As a security analyst for Market Masters, Inc., you have chosen to invest in one high-tech firm. You have narrowed your choice between RamTech Company or Accutrex Industries, firms of similar size and direct competitors in the industry. The following information was taken from their 2017 annual reports:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {RamTech}$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Accutrex}$
$\begin{array}{|l|r|r|r|r|}\hline&2017&2016&2017&2016\\\hline \text { Deferred income tax liability } & \$ 19,400 & \$ 15,600 & \$ 19,800 & \$ 21,800 \\\hline \text { Income before taxes } & 163,000 & & 158,500 & \\\hline \text { Income tax expense } & (50,000) & & (52,500) & \\\hline \text { Net income } & 113,000 & & 106,000 & \\\hline \text { Effective income tax rate } & 35 \% & & 35 \% &\\\hline\end{array}$

---

Definitions:

Colonists' Relationship

Colonists' Relationship pertains to the interactions and connections between early European settlers in foreign territories and the indigenous populations, other colonists, or their home countries, often marked by trade, conflict, and cultural exchanges.

Skilled Craftsmen

Workers who have specialized training and expertise in a particular craft or trade, historically crucial to various industries and the economy.

Educated Elite

Individuals who have achieved a high level of education and often hold positions of power or influence within society.

Crowd Action

Collective behavior by people gathered in a public space, often spontaneous and motivated by a common goal or grievance.