EXHIBIT 12
MICHIGAN BELL TELEPHONE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
Three Months Ended
March 31
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1997 1996
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1. EARNINGS
a) Income before interest expense,
income taxes and undistributed
equity earnings .................... $ 290.0 $ 245.9
b) Single Business Tax (2)................. 6.4 6.3
c) Portion of rental expense
representative of the
interest factor (1)(2).............. 2.9 3.1
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Total 1(a) through 1(c)................. $ 299.3 $ 255.3
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2. FIXED CHARGES
a) Total interest expense including
capital lease obligations .......... $ 21.1 $ 21.1
b) Capitalized interest................ 0.4 0.5
c) Portion of rental expense
representative of the
interest factor (1)................. 2.9 3.1
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Total 2(a) through 2(c)................. $ 24.4 $ 24.7
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3. RATIO OF EARNINGS TO FIXED CHARGES....... 12.27 10.34
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(1) One-third of rental expense is considered to be the amount
representing return on capital.
(2) Earnings represent income before income taxes and fixed charges.
Since the Single Business Tax (the Tax) and rental expense have
already been deducted, the Tax and the one-third portion of rental
expense considered to be fixed charges are added back.