Carter's preferred stock pays a dividend of $$1\mathrm{.}00$ per quarter. If the price of the stock is $$50\mathrm{.}00,$ what is its effective $($not nominal$)$ annual rate of return?

Question $3$ Select one:

a$.$

$7\mathrm{.}23\%$

b$.$

$7\mathrm{.}41\%$

c$.$

$7\mathrm{.}61\%$

d$.$

$8\mathrm{.}00\%$

e$.$

$8\mathrm{.}24\%$