McBean Company has outstanding 22 million shares of $2 par value common stock and 2.2 million shares of $4 par value preferred stock. The preferred stock has a 7% dividend rate. The company declares $13,200,000 in total dividends for the year. Preferred Dividends in arrears are $660,000.

7% X 2.2MM =? What's left?

Take the Percentage rate of 7% times the par value of $4 per share times the number of preferred shares issued and outstanding of 2.2 million shares to get the amount of preferred dividends to be paid in the current year. Now add your amount of preferred dividends to be paid in the current year to your preferred dividends in arrears to get the total amount of preferred dividends paid.

Now to get your common dividends amount simply subtract your total preferred dividends paid from the total dividends declared for the year.