Harry plc prides itself on its consistent dividend policy. Past data suggest that its target dividend payout ratio is 50 per cent of earnings. However, when earnings increase, Harry invariably raises its dividend only halfway towards the level that the target dividend payout ratio would indicate. The last dividend was £1 per share and Harry has just announced earnings for the recently ended financial year of £3 per share.

What dividend per share would you expect the Board to recommend?