EXHIBIT 12(b) 						 COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES 							 AND PREFERRED SHARE DIVIDENDS 						 SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES 						 						 						 										 Year Ended 						 (millions, except ratios) 1996 1995 1994 1993 Fixed Charges Interest and amortization of debt discount and expense on all indebtedness $1,365 $1,373 $1,279 $1,318 Add interest element implicit in rentals 121 119 114 105 								 1,486 1,492 1,393 1,423 Preferred dividend factor 41 89 234 209 Interest capitalized 5 4 1 3 Total fixed charges $1,532 $1,585 $1,628 $1,635 Income (loss) Income (loss) from continuing operations $1,271 $1,025 $ 857 $ 625 Deduct undistributed net income (loss) of unconsolidated companies 8 9 (7) 6 								 1,263 1,016 864 619 Add Fixed charges (excluding interest capitalized and preferred dividend factor) 1,486 1,492 1,393 1,423 Income taxes (benefit) 834 703 614 329 Income (loss) before fixed charges and income taxes $3,583 $3,211 $2,871 $2,371 Ratio of income to combined fixed charges and preferred share dividends 2.34 2.03 1.76 1.45 <FN> In 1996, all the outstanding 8.88% Preferred Shares, First Series were redeemed and thereafter the Company made no other preferred share dividend payments. </FN>