1 MCN INVESTMENT CORPORATION AND SUBSIDIARIES EXHIBIT 12-2 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO INTEREST (DOLLARS IN THOUSANDS) TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS ENDED ENDED ENDED SEPTEMBER 30, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995 ------------------ ----------------- ----------------- EARNINGS AS DEFINED (1) (4) Pre-tax income (2) $ 48,140 $ 21,899 $ 13,163 Fixed charges (3) 60,649 41,628 24,748 ---------- -------- --------- Earnings as defined $ 108,789 $ 63,527 $ 37,911 ========== ======== ========= FIXED CHARGES AS DEFINED (1) (4) Interest, expensed $ 59,208 $ 40,523 $ 24,151 Interest, capitalized 11,205 8,002 5,895 Amortization of debt discounts, premium and expense 1,192 982 520 Interest implicit in rentals 249 123 77 ---------- -------- --------- Fixed charges as defined $ 71,854 $ 49,630 $ 30,643 ========== ======== ========= Ratio of Earnings to Fixed Charges 1.51 1.28 1.24 ========== ======== ========= Ratio of Earnings to Interest, as adjusted (5) 1.79 1.37 1.24 ========== ======== ========= (1) Earnings and fixed charges are defined and computed in accordance with Item 503 of Regulation S-K. (2) This amount represents the aggregate of (a) the pre-tax income from continuing operations of MCN Investment and its majority-owned subsidiaries, (b) MCN Investment's share of pre-tax income of its 50% owned companies, and (c) any income actually received from less than 50% owned companies. (3) Fixed charges added to earnings are adjusted to exclude interest capitalized during the period. (4) In June 1996, MCN completed the sale of The Genix Group, its computer operations subsidiary. For purposes of calculating the Ratio of Earnings to Fixed Charges, it has been classified as a discontinued operation and therefore excluded from the ratio for all periods presented. (5) MCN Investment is allocated certain financing costs from MCN. Earnings and fixed charges as defined and computed in accordance with Item 503 of Regulation S-K have been adjusted to exclude intercompany interest expense.