Explain pls

Musial Corp. has just issued nonconvertible preferred stock (cumulative) with a par value of $50 and an annual dividend rate of 7.25%. The preferred stock is currently selling for $38.75 per share. What is the yield or return (r) on this preferred stock? A) 9.341% B) 9.345% C) 9.351% D) 9.355% Answer: D