1
EXHIBIT 12-3
MCN INVESTMENT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months
Ended Ended Ended Ended Ended
December 31, 1997 December 31, 1996 December 31, 1995 December 31, 1994 December 31, 1993
-----------------------------------------------------------------------------------------------
EARNINGS AS DEFINED (1)(4)
Pre-tax income (2) $ 51,892 $ 21,899 $ 13,163 $ 6,696 $ 5,003
Fixed charges (3) 65,891 41,628 24,748 13,640 4,612
------------ ----------- --------- ------------ -----------
Earnings as defined $ 117,783 $ 63,527 $ 37,911 $ 20,336 $ 9,615
============ =========== ========= ============ ===========
FIXED CHARGES AS DEFINED (1)(4)
Interest, expensed $ 64,434 $ 40,523 $ 24,151 $ 13,365 $ 4,507
Interest, capitalized 15,002 8,002 5,895 2,089 1,579
Amortization of debt discounts,
premium and expense 1,183 982 520 275 94
Interest implicit in rentals 274 123 77 - 11
------------ ----------- --------- ------------ -----------
Fixed charges as defined $ 80,893 $ 49,630 $ 30,643 $ 15,729 $ 6,191
============ =========== ========= ============ ===========
Ratio of Earnings to Fixed Charges 1.46 1.28 1.24 1.29 1.55
============ =========== ========= ============ ===========
(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.