All BUT ONE of the following facts is used to calculate Dividends per ordinary share.
Facts given are:
Net profit before tax $1,8000,000
Tax rate 30%
10% preference shares per accounts $200,000
Payout ratio for ordinary shares 60%
Market price for ordinary shares $3 each
Ordinary shares @ $4 each per accounts $1,000,000

I think the 10% prefernce shares isn't required, but how do I work out the answer please?

Net profit before tax $1,8000,000
Tax rate 30% - 540,000
Net profit 1,260,000
10% preference dividend $200,000
Profit available for ordinary shares 1,060,000
If market value is $3 per share then the total value is 750,000 Pay out 60% means 750,000 * 60% = 450,000
Dividend per share $450,000/250,000 shares = $1.80