EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES The following table sets forth the ratio of earnings to fixed charges and preferred stock dividend requirements for the periods indicated: 1993 1994 1995 1996 1997 ---- ---- ---- ---- ---- 23.6 17.0 8.1 4.9 3.5 For purposes of computing these ratios, earnings have been calculated by adding fixed charges (excluding capitalized interest) to income before extraordinary items. Fixed charges consist of interest costs, whether expensed or capitalized, preferred stock dividend requirements, the interest component of rental expense, if any, and amortization of debt discounts and issue costs, whether expensed or capitalized. CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES YEAR ENDED JULY 31, 1997 (DOLLAR AMOUNTS IN THOUSANDS) EARNINGS: Net income $ 77,037 Interest expense 28,256 Other adjustments 494 -------- $105,787 ======== FIXED CHARGES: Interest expense $ 28,256 Capitalized interest 868 Preferred Stock Dividends 461 Other adjustments 327 -------- $ 29,912 ======== RATIO OF EARNINGS TO FIXED CHARGES 3.5