You have won $10,000 in the lottery and you decided to make your first investmentibthe stock market. You are considering investing in the Retail sector and is evaluating two competitors Alpha & Beta. Below is a list of selected financial data for the two companies:

Alpha

Beta

Current Assets

$60,239

$17,200

Total Assets

$199,581

$33,440

Current Liabilities

$64,619

$16,540

Total Liabilities

$115,970

$22,597

Income Available to Shareholders

$14,694

$2,377

Share Price

$65.39

$133.58

Weighted Average number of Common Shares

3207

430

Required

Part a- 4 Marks

For each company calculate and explain briefly the following ratios from a Liquidity, Solvency and Profitability perspective as applicable.

Current Ratio

Debt to Asset Ratio

Basic EPS

Price Earnings Ratio

Part b- 2 Marks

Assuming that both companies have Complex Equity structure what other ratio you will need to calculate to assess the profitability of each company for you as a potentialinvestor .Explain the implications of that ratio.