LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - Statement re Computation of Ratios ($ in millions) Three Months Ended March 31 ------------------ 1997 1996 ---- ---- Earnings: Pretax income $51.8 $36.3 Add fixed charges: Interest on indebtedness 5.5 5.7 Portion of rent representing the interest factor 1.1 1.1 Preferred stock dividends 0.2 0.2 Accretion to face value of redeemable convertible preferred stock 0.2 0.2 ----- ------ Income as adjusted $58.8 $43.5 ===== ====== Fixed charges: Interest on indebtedness $ 5.5 $ 5.7 Portion of rent representing the interest factor 1.1 1.1 Preferred stock dividends 0.2 0.2 Accretion to face value of redeemable convertible preferred stock 0.2 0.2 ----- ------ Total fixed charges $ 7.0 $ 7.2 ===== ====== Ratio of earnings to fixed charges 8.40x 6.04x ===== ======