Exhibit 12-b
MORGAN STANLEY DEAN WITTER & CO.
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(Dollars in millions)
Three Months Ended Fiscal Year
February 28, February 28,
2002 2001 2001 2000 1999 1998 1997
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Earnings:
Income before income taxes (l) $1,347 $1,700 $5,734 $8,554 $7,756 $5,405 $4,274
Add: Fixed charges, net 2,980 6,219 20,891 18,306 12,598 13,544 10,898
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Income before income taxes
and fixed charges, net $4,327 $7,919 $26,625 $26,860 $20,354 $18,949 $15,172
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Fixed charges:
Total interest expense $2,936 $6,175 $20,755 $18,155 $12,487 $13,444 $10,806
Interest factor in rents 44 47 162 154 111 100 92
Dividends on preferred
securities issued by
subsidiaries 22 7 50 28 28 20 ---
Preferred stock dividends --- 14 50 56 72 87 110
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Total fixed charges and
preferred stock
dividends $3,002 $6,243 $21,017 $18,393 $12,698 $13,651 $11,008
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Ratio of earnings to fixed charges
and preferred stock dividends 1.4 1.3 1.3 1.5 1.6 1.4 1.4
(1) Fiscal 2001 income before income taxes does not include an extraordinary item or the cumulative effect of accounting change.
Fiscal 1998 income before income taxes does not include a cumulative effect of accounting change.
"Earnings" consist of income before income taxes and fixed charges, less dividends on preferred securities issued by subsidiaries.
"Fixed charges" consist of interest costs, including interest on deposits, and that portion of rent expense estimated to be
representative of the interest factor. The preferred stock dividend amounts represent pre-tax earning required to cover dividends
on preferred stock.