Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months to
September 30, Year Ended December 31,
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2003 2002 2002 2001 2000 1999 1998
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Earnings $269,806 $196,982 $299,250 $283,562 $228,919 $181,602 $118,989
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Fixed Charges $33,955 $18,161 $25,631 $26,116 $27,729 $24,223 $48,378
Earnings to Fixed Charges 7.95 10.85 11.68 10.86 8.26 7.50 2.46
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Ratio Before Reclassification of
Costs Associated with the Early
Extinguishment of Debt <F1> 10.85 11.68 10.86 8.26 7.50 5.07
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Earnings:
Pretax Earnings from
Continuing Operations 238,133 180,406 274,044 255,387 203,201 148,453 58,952
Add:
Fixed Charges 33,955 18,161 25,631 26,116 27,729 24,223 48,378
Less capitalized interest (20,514) (14,863) (21,116) (22,498) (24,367) (21,261) (22,525)
Add amortization of previously
capitalized interest 18,232 13,278 20,691 24,557 22,356 30,187 34,184
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Total Earnings 269,806 196,982 299,250 283,562 228,919 181,602 118,989
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Fixed Charges:
Homebuilding and corporate
interest expense 0 0 0 0 0 0 0
Interest component of rent expense 2,610 2,060 2,812 2,253 2,177 1,615 0
Amortization and expensing of debt
expenses <F1> 10,831 1,238 1,703 1,365 1,185 1,347 25,853
Capitalized interest 20,514 14,863 21,116 22,498 24,367 21,261 22,525
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Total Fixed Charges 33,955 18,161 25,631 26,116 27,729 24,223 48,378
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<F1> The Company adopted the provisions of SFAS No. 145, with respect to the rescission of Statement 4, in the first quarter of
2003. As a result, $24.9 million of costs in 1998 associated with the early extinguishment of debt, previously classified as
an extraordinary item are currently classified as expenses related to debt redemption and are deducted in calculating pre-tax
income. In the second quarter of 2003, the Company incurred $9.3 million in expenses related to debt redemption. The effect
of the new classification has been reflected in the computation of the 1998 and 2003 ratios.