Kanyoora Limited reported profit for the period ended June 30, 2021 of Ksh.420 million. The statement of financial position reported share capital of Ksh.1 billion as at June 30, 2021 made up of ordinary shares of Ksh.5 par value. Kanyoora Limited paid 30% of its earnings for the year to its shareholders as dividends.

Required:

1. Compute the earnings per share for Kanyoora Limited
2. Advise on the dividend pay-out ratio of Kanyoora Limited

Total: 20 marks