Rebello's Preferred Stock Pays a Dividend of $1

Multiple Choice

Rebello's preferred stock pays a dividend of $1.00 per quarter,and it sells for $55.00 per share.What is its effective annual (not nominal) rate of return?

A) 6.62%
B) 6.82%
C) 7.03%
D) 7.25%
E) 7.47%