EXHIBIT 12 MERRILL LYNCH PREFERRED CAPITAL TRUST IV MERRILL LYNCH PREFERRED FUNDING IV, L.P. COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SECURITIES DISTRIBUTIONS (dollars in thousands) FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2004 DECEMBER 26, 2003 DECEMBER 27, 2002 --------------------------------- --------------------------------- ---------------------------------- MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH PREFERRED PREFERRED PREFERRED PREFERRED PREFERRED PREFERRED CAPITAL TRUST IV FUNDING IV,L.P. CAPITAL TRUST IV FUNDING IV,L.P. CAPITAL TRUST IV FUNDING IV, L.P. ----------------- --------------- ----------------- --------------- ----------------- ---------------- Earnings $ 29,361 $ 34,265 $ 29,361 $ 34,257 $ 29,361 $ 34,303 ======== ======== ======== ======== ======== ======== Fixed charges $ - $ - $ - $ - $ - $ - Preferred securities distribution requirements 28,480 29,361 28,480 29,361 28,480 29,361 -------- -------- -------- -------- -------- -------- Total combined fixed charges and preferred securities distribution requirements $ 28,480 $ 29,361 28,480 $ 29,361 $ 28,480 $ 29,361 ======== ======== ======== ======== ======== ======== Ratio of earnings to combined fixed charges and preferred securities distribution requirements 1.03 1.17 1.03 1.17 1.03 1.17