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 Nine Months Ended -------------------------- -------------------------- Sept. 27, Sept. 28, Sept. 27, Sept. 28, 2002 2001 2002 2001 -------- -------- -------- -------- Pre-tax earnings $ 1,054 $ 686 $ 3,014 $ 2,889 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 2,534 3,843 7,499 14,223 ------- ------- ------- ------- Pre-tax earnings before fixed charges 3,588 4,529 10,513 17,112 ------- ------- ------- ------- Fixed charges: Interest 2,484 3,777 7,342 14,028 Other (a) 98 119 302 353 ------- ------- ------- ------- Total fixed charges 2,582 3,896 7,644 14,381 ------- ------- ------- ------- Preferred stock dividend requirements 14 14 41 42 ------- ------- ------- ------- Total combined fixed charges and preferred stock dividends $ 2,596 $ 3,910 $ 7,685 $14,423 ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 1.39x 1.16x 1.38x 1.19x RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 1.38x 1.16x 1.37x 1.19x - ---------------------------------------------------------------------------------------------------------------------- (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.