1 EXHIBIT 12 WATERHOUSE INVESTOR SERVICES, INC COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Fiscal Years Ended August 31, Nine Months Ended ------------------------------------------------------------------ May 31, 1991 1992 1993 1994 1995 1996 ---------- ----------- ----------- ----------- ----------- ----------- Earnings Before Taxes On Income $5,689,134 $15,163,052 $25,791,806 $28,009,177 $33,447,304 $42,698,410 ---------- ----------- ----------- ----------- ----------- ----------- Fixed Charges: Interest 1,388,577 1,958,817 3,043,570 5,791,799 11,805,775 25,397,608 Interest Factor in Rent 418,685 618,012 899,371 1,206,530 1,433,164 1,915,231 ---------- ----------- ----------- ----------- ----------- ----------- Total Fixed Charges 1,807,262 2,576,829 3,942,941 6,998,329 13,238,939 27,312,839 ---------- ----------- ----------- ----------- ----------- ----------- Earnings Before Taxes On Income and Fixed Charges $7,496,396 $17,739,881 $29,734,747 $35,007,506 $46,686,243 $70,011,249 ========== =========== =========== =========== =========== =========== Ratio of Earnings to Fixed Charges 4.15 6.88 7.54 5.00 3.53 2.56