The stockholders' equity section of Sundberg Corporation's balance sheet at December 31 is presented here. SUNDBERG CORPORATION Balance Sheet (partial) Stockholder's equity Paid-in capital Preferred stock, cumulative, 11,667 shares authorized, 7,000 shares issued and outstanding $725,200 Common stock, no par, 783,375 shares authorized, 626,700 shares issued 2,820,150 Total paid-in capital 3,545,350 Retained earnings 1,182,290 Total paid-in capital and retained earnings 4,727,640 Less: Treasury stock (8,150 common shares) (32,600) Total stockholder's equity $4,695,040 From a review of the stockholders' equity section, answer the following questions. If the annual dividend on preferred stock is $38,800, what is the dividend rate on preferred stock