We present theoretical results for the frequency-dependent dielectric
response, both for the electric field parallel and perpendicular to th
e c axis of graphite. The calculations are performed using a full-pote
ntial linear muffin-tin orbital method. Our calculations show fair agr
eement with experimental data and the different features observed are
identified from interband transitions in various regions of the Brillo
uin zone. The anisotropy of the dielectric function is discussed in de
tail and shown to be due to the difference in the optical matrix eleme
nts for the two different polarizations, which is a result of the anis
otropic crystallographic and electronic properties of graphite.