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 $727,300 Common stock, no par, 781,750 shares authorized, 625,400 shares issued 2,251,440 Total paid-in capital 2,978,740 Retained earnings 1,170,660 Total paid-in capital and retained earnings 4,149,400 Less: Treasury stock (8,130 common shares) (32,520) Total stockholder's equity: $4,116,880 If the annual dividend on preferred stock is $38,900, what is the dividend rate on preferred stock? (Round answer to 2 decimal places, e.g. 2.25.) _________________________%