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 ---------------------------------------------------------- 1998 1997 1996 1995 1994 ---------- ---------- ---------- ---------- ---------- Pre-tax earnings from continuing operations $ 2,096 $ 3,111 $ 2,628 $ 1,836 $ 1,747 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 18,498 16,410 12,266 11,587 8,736 ------- ------- ------- ------- ------- Pre-tax earnings before fixed charges 20,594 19,521 14,894 13,423 10,483 ======= ======= ======= ======= ======= Fixed charges: Interest 18,278 16,224 12,083 11,434 8,591 Other (a) 351 236 183 153 145 ------- ------- ------- ------- ------- Total fixed charges 18,629 16,460 12,266 11,587 8,736 ------- ------- ------- ------- ------- Preferred stock dividend requirements 58 61 73 77 22 ------- ------- ------- ------- ------- Total combined fixed charges and preferred stock dividends $18,687 $16,521 $12,339 $11,664 $ 8,758 ======= ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 1.11 1.19 1.21 1.16 1.20 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 1.10 1.18 1.21 1.15 1.20

(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.