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 Nine Months Ended Ended ------------------------- ------------------------ Sept. 25, Sept. 26, Sept.25, Sept. 26, 1998 1997 1998 1997 --------- --------- -------- --------- Pretax earnings (loss) from continuing operations $ (206) $ 789 $ 1,602 $ 2,376 Add: Fixed charges 4,954 4,249 14,448 12,106 ------ ------ ------- ------- Pretax earnings before fixed charges $4,748 $5,038 $16,050 $14,482 ====== ====== ======= ======= Fixed charges: Interest $4,860 $4,190 $14,199 $11,929 Other (A) 94 59 249 177 ------ ------ ------- ------- Total fixed charges $4,954 $4,249 $14,448 $12,106 ====== ====== ======= ======= Preferred stock dividend ` requirements $ 15 $ 15 $ 46 $ 47 ------ ------ ------- ------- Total combined fixed charges and preferred stock dividends $4,969 $4,264 $14,494 $12,153 ====== ====== ======= ======= Ratio of earnings to fixed charges (B) .96 1.19 1.11 1.20 Ratio of earnings to combined fixed charges and preferred stock dividends (B) .96 1.18 1.11 1.19
(A) Other fixed charges consist of the interest factor in rentals, amortization of debt expense, and preferred stock dividend requirements of majority-owned subsidiaries. (B) The ratio calculations indicate a less than one-to-one coverage for the three months ended September 25, 1998. Pretax loss from continuing operations for the three months ended September 25, 1998 is inadequate to cover fixed charges. The deficient amounts for the respective ratios are $206 and $221. Note: Prior periods have been restated for the Midland Walwyn merger, as required under pooling-of-interests accounting.