EXHIBIT 12(b) 				COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES 					 AND PREFERRED SHARE DIVIDENDS 				 SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES 						 Twelve 						 Months 						 Ended 						 Jun. 28, Year Ended 						 1997 (millions, except ratios) (unaudited) 1996 1995 1994 1993 1992 Fixed Charges Interest and amortization of debt discount and expense on all indebtedness $1,372 $1,365 $1,373 $1,279 $1,318 $1,389 Add interest element implicit in rentals 154 121 119 114 105 165 						 1,526 1,486 1,492 1,393 1,423 1,554 Preferred dividend factor 18 41 89 234 209 120 Interest capitalized 4 5 4 1 3 23 Total fixed charges $1,548 $1,532 $1,585 $1,628 $1,635 $1,697 Income (loss) Income (loss) from continuing operations $1,145 $1,271 $1,025 $857 $625 ($1,812) Deduct undistributed net income (loss) of unconsolidated companies 3 8 9 (7) 6 (4) 						 1,142 1,263 1,016 864 619 ( 1,808) Add Fixed charges (excluding interest capitalized and preferred dividend factor) 1,526 1,486 1,492 1,393 1,423 1,554 Income taxes (benefit) 858 834 703 614 329 ( 1,039) Income (loss) before fixed charges and income taxes $3,526 $3,583 $3,211 $2,871 $2,371 ($1,293) Ratio of income to combined fixed charges and preferred share dividends 2.28 2.34 2.03 1.76 1.45 (A) <FN> In 1996, all the 8.88% Preferred Shares, First Series were redeemed and therefore in 1997 the Company made no other preferred share dividend payments. (A) As a result of the loss for the year ended December 31, 1992, earnings did not cover fixed charges by $2,990 million. </FN>