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)

 

    

Nine Months
Ended

September 24,
2004

   

Year Ended Last Friday in December

        2003 (a)
    2002 (a)
    2001 (a)
     2000 (a)
    1999 (a)
     (39 weeks)
    (52 weeks)
    (52 weeks)
    (52 weeks)
     (52 weeks)
    (53 weeks)

Pre-tax earnings (loss) (b)

    $ 3,938    $ 5,040    $ 2,343    $ (228 )   $ 4,994    $ 3,573

Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries)

      6,836      8,011      10,044      17,322       18,532      13,464
    
  
  
  
 
  

Pre-tax earnings before fixed charges

      10,774      13,051      12,387      17,094       23,526      17,037
    
  
  
  
 
  

Fixed charges:

                                           

Interest

      6,695      7,819      9,838      17,069       18,278      13,217

Other (c)

      141      193      206      260       287      262
    
  
  
  
 
  

Total fixed charges

      6,836      8,012      10,044      17,329       18,565      13,479
    
  
  
  
 
  

Preferred stock dividend requirements

      38      52      52      54       55      57
    
  
  
  
 
  

Total combined fixed charges and preferred stock dividends

    $ 6,874    $ 8,064    $ 10,096    $ 17,383     $ 18,620    $ 13,536
    
  
  
  
 
  

Ratio of earnings to fixed charges

      1.58      1.63      1.23      0.99 (d)     1.27      1.26

Ratio of earnings to combined fixed charges and preferred stock dividends

      1.57      1.62      1.23      0.98 (d)     1.26      1.26

 

(a) Prior period amounts have been restated to reflect the retroactive adoption of the fair value recognition provisions of SFAS No. 123, Accounting for Stock-Based Compensation.

 

(b) Excludes undistributed earnings (loss) from equity investees.

 

(c) Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs, preferred security dividend requirements of subsidiaries, and capitalized interest.

 

(d) Earnings were insufficient to cover fixed charges and combined fixed charges and preferred dividend requirements by $235 million and $289 million, respectively.