Delta Ltd has assets of $100 million, liabilities of $60 million and equity of $40 million at 30 June. The liabilities include preference shares with a carrying amount of $20 million. A dividend of $1 million (i.e., $1 000 000) was paid to preference shareholders on 30 June 20X1.

For the year ended 30 June 20X1:

Profit before tax and interest $5 000 000

Interest expense $1 500 000

Ignore tax.

If the preference shares are instead classified as equity, Delta Ltd's leverage ratio (liabilities/total assets) would be

Group of answer choices

50%

40%

80%

60%