Medicine Limited is a pharmaceutical company. The company is focusing to e development of vaccines against all different types of viruses.

The following information was sourced from the integrated annual report of Medicine Limited.

The earnings before tax for the year ending $30$ June $2023$ was correctly calculated as R$132000000(2022$: R$144000000).$ The industry norm for the return on assets is $7\%$; $1$:$1$ for the debt : equity ratio and $4$ times for total assets : total liabilities.

Extract from the statement of financial position at $30$ June $2023$

Notes

R$\text{'}000$

Ordinary shares

Retained income

Shareholders' capital and reserves

$500000$

$720000$

$1220000$

$14\%$ Preference shares

Long term loan $-$ FNB Bank $(12\mathrm{.}67\%)$

Total equity and liabilities

$120000$

$680000$

$2020000$

Additional information

The ordinary shares were issued at R$8$ per share. The current market price for ordinary shares is R$150$ per share. New issues will have no effect on this price, although ordinary share issue costs will be $3\%$ of the current market share price.

An ordinary share dividend of $105,46$ cents was paid for the $2023$ financial year end. $(2022$: $95,87$ cents and $2021$: $87,15$ cents$).$ The Medicine Limited Board intends to maintain the average historical growth in dividends.

The preference shares were issued at R$80$ per share. Preference shares in the similar risk class are currently yielding $11,67\%.$ Preference shares carry a dividend pay$-$out rate of $14\%$ and will be redeemed at a premium of $5\%$ after $4$ years. The premium is$,$ however, only paid a year after the redemption date.

Medicine Limited aims to maintain a debt: equity ratio of $1$:$1$ going forward $($based on book values$).$

The South African Income Tax Act stipulates a company tax rate of $28\%$ and a capital allowance on new infrastructure of $20\%$ per annum if it is considered to be manufacturing machinery. The prime lending rate is currently $7\%$ and is expected to stay unchanged for the foreseeable future.

What is the total debt ratio for Medicine Limited for the year ended $30$ June $2023?$