Dow Chemical 10-K 2011 FY Annual report

The Dow Chemical Company and Subsidiaries EXHIBIT 12.1

Computation of Ratio of Earnings to Fixed Charges and Combined

Fixed Charges and Preferred Stock Dividend Requirements

	For the Years Ended December 31
In millions, except ratios (Unaudited)	2011			2010			2009			2008			2007
Income from Continuing Operations Before     Income Taxes	$	3,601		$	2,802		$	469		$	1,277		$	4,192
Add (deduct):
Equity in earnings of nonconsolidated affiliates	(1,223		)	(1,112		)	(630		)	(787		)	(1,122		)
Distributed income of earnings of     nonconsolidated affiliates	1,016			668			690			836			774
Capitalized interest	(90		)	(72		)	(61		)	(97		)	(85		)
Amortization of capitalized interest	100			95			91			84			79
Preferred security dividends	—			—			(20		)	(63		)	(81		)
Adjusted earnings	$	3,404		$	2,381		$	539		$	1,250		$	3,757
Fixed charges:
Interest expense and amortization of debt     discount	$	1,341		$	1,473		$	1,571		$	648		$	584
Capitalized interest	90			72			61			97			85
Preferred security dividends	—			—			20			63			81
Rental expense – interest component	112			95			107			120			124
Total fixed charges	$	1,543		$	1,640		$	1,759		$	928		$	874
Earnings available for the payment of     fixed charges	$	4,947		$	4,021		$	2,298		$	2,178		$	4,631
Ratio of earnings to fixed charges	3.2			2.5			1.3			2.3			5.3
Earnings required for combined fixed     charges and preferred stock dividends:
Preferred stock dividends	$	340		$	340		$	312		$	—		$	—
Adjustment to pretax basis (at 35 percent)	183			183			168			—			—
Preferred stock dividends - pretax	$	523		$	523		$	480		$	—		$	—
Combined fixed charges and preferred stock     dividend requirements	$	2,066		$	2,163		$	2,239		$	928		$	874
Ratio of earnings to combined fixed charges     and preferred stock dividend requirements	2.4			1.9			1.0			2.3			5.3