Following information is available for Companies Ace Ltd. and Pace Ltd.: (₹ in lacs)

Particulars Ace Ltd. Pace Ltd.

Long term Debt 625 700

Equity 2100 2850

Current assets 450 550

Current liabilities 300 375

Net Profit 115 178

Revenue (net) 355 452

a. Compute Debt-equity ratio, current ratio for both companies.

b. If face value of equity shares of both companies ₹10 each, calculate the Earnings per share ratio for both companies, advising which company is recommended for investment.