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)
Year Ended Last Friday in December 1999 1998 1997 1996 1995 ----------- ----------- ----------- ------------ ------------ (53 weeks) (52 weeks) (52 weeks) (52 weeks) (52 weeks) Pre-tax earnings from continuing operations 4,078 2,096 3,111 2,629 1,836 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 13,222 17,223 15,121 11,589 11,021 ----------- ----------- ----------- ------------ ------------ Pre-tax earnings before fixed charges 17,300 19,319 18,232 14,218 12,857 Fixed charges: Interest(a) 12,978 17,004 14,934 11,414 10,876 Other (b) 448 351 236 182 153 ----------- ----------- ----------- ------------ ------------ Total fixed charges 13,426 17,355 15,170 11,596 11,029 Preferred stock dividend requirements 55 58 61 73 77 Total combined fixed charges ----------- ----------- ----------- ------------ ------------ and preferred stock dividends 13,481 17,413 15,231 11,669 11,106 ----------- ----------- ----------- ------------ ------------ Ratio of earnings to fixed charges 1.29 1.11 1.20 1.23 1.17 Ratio of earnings to combined fixed charges and preferred stock dividends 1.28 1.11 1.20 1.22 1.16
(a) Prior period amounts have been restated to conform to the current year presentation. (b) Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs, preferred security dividend requirements of subsidiaries, and capitalized interest.