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 -------------------------------------------------------------- 2000 1999 1998 1997 1996 ---------- ----------- ---------- ---------- ---------- (52 weeks) (53 weeks) (52 weeks) (52 weeks) (52 weeks) Pre-tax earnings $ 5,717 $ 4,206 $ 2,120 $ 3,102 2,671 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 18,307 13,235 17,237 15,128 11,605 ---------- ----------- ---------- ---------- ---------- Pre-tax earnings before fixed charges 24,024 17,441 19,357 18,230 14,276 Fixed charges: Interest 18,052 12,987 17,014 14,938 11,426 Other (a) 465 451 354 240 187 ---------- ----------- ---------- ---------- ---------- Total fixed charges 18,517 13,438 17,368 15,178 11,613 Preferred stock dividends 55 56 58 62 74 Total combined fixed charges ---------- ----------- ---------- ---------- ---------- and preferred stock dividends $ 18,572 $ 13,494 $ 17,426 $ 15,240 $ 11,687 ---------- ----------- ---------- ---------- ---------- Ratio of earnings to fixed charges 1.30 1.30 1.11 1.20 1.23 Ratio of earnings to combined fixed charges and preferred stock dividends 1.29 1.29 1.11 1.20 1.22
(a) Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs, preferred security dividend requirements of subsidiaries, and amortization of 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.