How does the 9% compute in determining the preferred stock and the common stock?

Here's the way the example appears:

9% cummulative preferred stock, $100 par value
authorized 100,000 shares, issued 50,000 . . . . . . . . . . . $5,000,000

Common stock, $5 par value, authorized 3 million
shares, issued 2 million shares . . . . . . . . . . . . . . . . . . . 10,000,000

Additional paid in capital:
Preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000
Total paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . $35,500,000

I don't know how to factor in the 9% for the dividends paid to preferred stockholders before everyone else. How was the $500K and $20 million calculated?

So far I have:

Preferred stock
100K shares x $100 par value = $10 million authorized
50K shares x $100 par value = $5 million issued

Common stock
3 million shares x $5 = $15 million authorized
2 million shares x $5 = $10 million issued

I'm stuck! Can anyone help please?

Thanks,
Carol