Preferred Stock: Each Quarter, Transam, Inc

Preferred stock: Each quarter, Transam, Inc., pays a dividend on its perpetual preferred stock. Today, the stock is selling at $83.45. If the required rate of return for such stocks is 10.5 percent, what is the quarterly dividend paid by this firm?

A) $8.76
B) $10.50
C) $2.19
D) $2.63