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a. Explain why P/E ratio and EPS are used in determining health of a stock? Is it good to have a low EPS ratio? Why

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a. Explain why P/E ratio and EPS are used in determining health of a stock? Is it good to have a low EPS ratio? Why or why not? (8) A skeleton of Heuristic Solution's balance sheet appears as follows (amounts in thousands): A B D 1 Balance Sheet 2 3 4 5 $ 253 (a) 555 (b) (c) Total current liabilities Long-term debt Other long-term liabilities $ 1.164 (e) 826 Cash Receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Other assets Total assets 6 7 185 2.846 Common shares Retained earnings Total liabilities and shareholders' equity 8 9 1.150 $6315 I $ (D 10 on's balance sheet: Use the following ratio data to complete Heuristic Solu a. Debt ratio is 0.52. b. Current ratio is 1.20. c. Acid-test ratio is 0.70 13 Bi 3/

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