Franklin Resources (BEN) 10-K 2007 FY Annual report

EXHIBIT 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(dollars in thousands) for the fiscal years ended September 30,	2007		2006		2005		2004		2003
Income before taxes excluding equity in income of investees, minority interest in earnings of consolidated subsidiaries and capitalized interest	$	2,406,424	$	1,824,729	$	1,397,275	$	977,039	$	694,399
Additions:
Dividends received from equity-method investees		19,537		22,486		—		69		—
Fixed charges
Interest expense-excluding interest on deposits		23,595		30,155		34,563		32,254		22,924
Interest expense-deposits		14,344		14,391		7,651		4,295		6,122
Interest factor on rent1		17,318		16,736		15,717		13,020		13,413
Total fixed charges	$	55,257	$	61,282	$	57,931	$	49,569	$	42,459
Adjusted earnings	$	2,481,218	$	1,908,497	$	1,455,206	$	1,026,677	$	736,858
Ratio of adjusted earnings to fixed charges-including interest on deposits		44.9		31.1		25.1		20.7		17.4
Ratio of adjusted earnings to fixed charges-excluding interest on deposits		60.3		40.4		28.8		22.6		20.1

¹ Interest factor on rent represents one-third of rental expense (the approximate portion of rental expense representing interest).

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