Photoshop .eps files will hold text and vectors going into InDesign
I just tested this out of curiosity, and sure enough, it does.

(Edit: Actually I now remember having seen this before. I just don't work with Photoshop EPS files that much these days.)
One caveat though: The "Include vector data" option must be chosen in the EPS options window. If it's not, the text displays as raster when placed into InDesign.
Save the file as a Photoshop PDF using the "Press Quality" preset.
This setting is fine for many uses I'm sure. However here is a fair warning for anyone interested to know: The Press Quality setting uses JPEG compression, which is lossy and can create compression artifacts, which may or may not affect overall print quality.
To eliminate this possibility, you can either turn off compression (which will result in a much, much larger PDF file size on disk), or you can use ZIP compression which is lossless, thus avoiding any compression artifacts. The ZIP option will also create a larger PDF file than the Press Quality setting, but not as large as a non-compressed PDF.
[doublepost=1486659486][/doublepost]
Resolution (dpi) depends on the line screen (lpi) of the printing device.
The traditional approach says that dpi should always be twice the lpi, so if the printing device uses 300 lpi, then the resolution should be 600 dpi. Or if 150 lpi, then 300 dpi, and so on.
Although this is a good guideline, I've seen that it isn't necessarily a hard and fast rule. At my workplace, we print at 250 lpi but our official minimum dpi is less than that.
