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 For the Six Months Ended Ended ----------------------------- ---------------------------- June 25, June 26,(a) June 25, June 26,(a) 1999 1998 1999 1998 --------- -------- ------- ---------- Pre-tax earnings from continuing operations $1,031 $ 915 $2,027 $ 1,783 Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) 3,243 4,513 6,595 8,857 ------ ------ ------ ------ Pre-tax earnings before fixed charges 4,274 5,428 8,622 10,640 ====== ====== ====== ====== Fixed charges: Interest 3,183 4,459 6,475 8,754 Other(b) 110 81 220 154 ------ ------ ------ ------ Total fixed charges $3,293 $4,540 $6,695 $8,908 ====== ====== ====== ====== Preferred stock dividend requirements 14 15 28 31 ------ ------ ------ ------ Total combined fixed charges and preferred stock dividends $3,307 $4,555 $6,723 $8,938 ====== ====== ====== ====== RATIO OF EARNINGS TO FIXED CHARGES 1.30 1.20 1.29 1.19 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 1.29 1.19 1.28 1.19
(a) Amounts have been restated from that originally reported in the 1998 second quarter Form 10-Q to reflect the 1998 merger with Midland Walwyn Inc., accounted for as a pooling-of-interests. (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.