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}$
$\begin{array}{|l|r|r|r|r|}\hline&2017&2016&2017&2016\\\hline \text { Deferred income tax liability } & \$ 19,400 & \$ 15,600 & \$ 19,800 & \$ 21,800 \\\hline \text { Income before taxes } & 163,000 & & 158,500 & \\\hline \text { Income tax expense } & (50,000) & & (52,500) & \\\hline \text { Net income } & 113,000 & & 106,000 & \\\hline \text { Effective income tax rate } & 35 \% & & 35 \% &\\\hline\end{array}$

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Definitions:

Competitive

A trait or situation where individuals or entities strive against each other to achieve a goal or superiority.

Type B Personality Style

A personality pattern in which a person is more relaxed, less aggressive, and less concerned about time.

Relaxed

A physical and mental state characterized by reduced tension and anxiety.

Aggressive

Refers to a range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.