You are a security analyst for Magneto Investments, and have chosen to invest in one firm from the semi-conductor manufacturing industry. You have narrowed your choice to either OwenFoley Company or Amerton Industries, firms of similar size and direct competitors in the industry. The information below was taken from their 1996 annual reports. Owen-Foley Company 1996 1995 Balance Sheet Deferred income tax liability $ 18,400 $16,600 Income Statement Income before taxes $163,000 Income tax expense (52,000) Net income $111,000 Effective income tax rate: 36% Amerton Industries 1996 1995 Balance Sheet Deferred income tax liability $ 18,800 $19,800 Income Statement Income before taxes $158,500 Income tax expense (53,500) Net income Effective income tax rate: 36% $105,000 REQUIRED: On the basis of this information explain which of the two firms seems to have the stronger earning power