Dow Chemical 10-Q 2013 Q2 Quarterly 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

	Six Months Ended						For the Years Ended December 31
In millions, except ratios (Unaudited)	Jun 30, 2013			Jun 30, 2012			2012			2011			2010			2009			2008
Income from Continuing Operations Before     Income Taxes	$	4,502		$	1,690		$	1,665		$	3,601		$	2,802		$	469		$	1,277
Add (deduct):
Equity in earnings of nonconsolidated affiliates	(458		)	(317		)	(536		)	(1,223		)	(1,112		)	(630		)	(787		)
Distributed income of earnings of     nonconsolidated affiliates	618			508			823			1,016			668			690			836
Capitalized interest	(42		)	(45		)	(84		)	(90		)	(72		)	(61		)	(97		)
Amortization of capitalized interest	46			45			90			100			95			91			84
Preferred security dividends	—			—			—			—			—			(20		)	(63		)
Adjusted earnings	$	4,666		$	1,881		$	1,958		$	3,404		$	2,381		$	539		$	1,250
Fixed charges:
Interest expense and amortization of debt     discount	$	575		$	641		$	1,269		$	1,341		$	1,473		$	1,571		$	648
Capitalized interest	42			45			84			90			72			61			97
Preferred security dividends	—			—			—			—			—			20			63
Rental expense – interest component	61			58			120			112			95			107			120
Total fixed charges	$	678		$	744		$	1,473		$	1,543		$	1,640		$	1,759		$	928
Earnings available for the payment of     fixed charges	$	5,344		$	2,625		$	3,431		$	4,947		$	4,021		$	2,298		$	2,178
Ratio of earnings to fixed charges	7.9			3.5			2.3			3.2			2.5			1.3			2.3
Earnings required for combined fixed     charges and preferred stock dividends:
Preferred stock dividends	$	170		$	170		$	340		$	340		$	340		$	312		$	—
Adjustment to pretax basis (at 35 percent)	92			92			183			183			183			168			—
Preferred stock dividends - pretax	$	262		$	262		$	523		$	523		$	523		$	480		$	—
Combined fixed charges and preferred stock     dividend requirements	$	940		$	1,006		$	1,996		$	2,066		$	2,163		$	2,239		$	928
Ratio of earnings to combined fixed charges     and preferred stock dividend requirements	5.7			2.6			1.7			2.4			1.9			1.0			2.3

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