EXHIBIT 12.2 RJR NABISCO HOLDINGS CORP. COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (DOLLARS IN MILLIONS) YEAR ENDED THREE MONTHS ENDED DECEMBER 31, 1994 MARCH 31, 1995 ----------------- ------------------ Earnings before fixed charges: Income before extraordinary item....................... $ 764 $ 198 Provision for income taxes............................. 611 159 ------- ------- Income before income taxes............................. 1,375 357 Interest expense....................................... 1,046 217 Amortization of debt issuance costs.................... 19 3 Interest portion of rental expense..................... 51 13 ------- ------- Earnings before fixed charges............................ $ 2,491 $ 590 ------- ------- ------- ------- Combined fixed charges and preferred stock dividends: Interest expense....................................... $ 1,046 $ 217 Amortization of debt issuance costs.................... 19 3 Interest portion of rental expense..................... 51 13 Capitalized interest................................... 11 3 Preferred stock dividends.............................. 593(1) 110(2) ------- ------- Combined fixed charges and preferred stock dividends..... $ 1,720 $ 346 ------- ------- ------- ------- Ratio of earnings to combined fixed charges and preferred stock dividends........................................ 1.448 1.705 - - - ------------ (1) Represents dividends of $15 million on ESOP Preferred Stock and pre-tax equivalent amount on dividends of $175 million on the Series A PERCS, $116 million on the Series B Preferred and $85 million on the Series C PERCS. (2) Represents dividends of $4 million on ESOP Preferred Stock and pre-tax equivalent amount on dividends of $29 million on the Series B Preferred and $40 million on the Series C PERCS.