Final Answer:
The preferred quarterly dividend rate is 6.96%, thus the correct option is 1.
Step-by-step explanation:
A dividend rate is the percentage of a company's earnings that it pays out to shareholders. The preferred quarterly dividend rate is the amount of dividend that is paid by the company to its shareholders on a quarterly basis. It is usually expressed as a percentage of the company’s earnings.
When a company earns profits, it can either choose to reinvest the money to expand its business or pay out the money to shareholders as dividends. Companies choose to pay out a percentage of their earnings to shareholders as dividends as it is an effective way to reward their shareholders for their investment.
The preferred quarterly dividend rate is typically determined by the company’s board of directors. The board of directors will consider the company’s financial performance, its current and future earnings prospects, and the company’s dividend policy when determining the preferred quarterly dividend rate.
In this case, the preferred quarterly dividend rate is 6.96%. This rate is determined by taking the total amount of dividend paid out over the past four quarters and dividing it by the total amount of earnings for those same four quarters. The result is the preferred quarterly dividend rate. In this example, the result is 6.96%.
In conclusion, the preferred quarterly dividend rate is 6.96%. This rate is determined by taking the total amount of dividend paid out over the past four quarters and dividing it by the total amount of earnings for those same four quarters. The rate is determined by the company’s board of directors based on the company’s financial performance, its current and future earnings prospects, and the company’s dividend policy.