EXHIBIT 12 MERRILL LYNCH & CO., INC. AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (dollars in millions) FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED -------------------------- -------------------------- JUNE 29, JUNE 30, JUNE 29, JUNE 30, 2001 2000 2001 2000 -------- -------- -------- -------- Pre-tax earnings $ 852 $ 1,413 $ 2,203 $ 3,098 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 4,803 4,259 10,380 8,102 --------- -------- --------- --------- Pre-tax earnings before fixed charges 5,655 5,672 12,583 11,200 ========= ======== ========= ========= Fixed charges: Interest 4,739 4,196 10,251 7,971 Other (a) 117 115 234 235 --------- -------- --------- --------- Total fixed charges 4,856 4,311 10,485 8,206 ========= ======== ========= ========= Preferred stock dividend requirements 14 14 28 28 Total combined fixed charges --------- -------- --------- --------- and preferred stock dividends $ 4,870 $ 4,325 $ 10,513 $ 8,234 ========= ======== ========= ========= RATIO OF EARNINGS TO FIXED CHARGES 1.16 1.32 1.20 1.36 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 1.16 1.31 1.20 1.36 (a) Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs, preferred security dividend requirements of subsidiaries, and capitalized interest. Note: Prior period amounts have been restated to reflect the merger with Herzog, Heine, Geduld, Inc. as required under pooling-of-interests accounting.