1 MCN INVESTMENT CORPORATION EXHIBIT 12-4 COMPUTATION OF INTEREST COVERAGE RATIO (Dollars In Thousands) The following table sets forth the interest coverage ratio for MCN Investment on a historical basis for the periods indicated. This ratio differs from the SEC prescribed "Ratio of Earnings to Fixed Charges" in its treatment of certain hybrid securities of MCN and MCN Investment. Twelve Months Twelve Months Twelve Months Ended Ended Ended March 31, 1998 December 31, 1997 December 31, 1996 -------------- ----------------- ----------------- EARNINGS AS ADJUSTED: Pretax income (1) $ 64,965 $ 64,738 $ 24,208 Interest capitalized (16,517) (15,002) (9,398) Preferred dividend adjustment (2) 34,701 39,956 17,989 Interest rate charges 52,052 40,476 32,696 -------- -------- -------- $135,201 $130,168 $ 65,495 ======== ======== ======== INTEREST RATE CHARGES: Interest expensed $ 69,932 $ 64,434 $ 40,523 Interest capitalized 16,517 15,002 9,398 Interest implicit in rentals 304 996 764 Preferred dividends adjustment (2) (34,701) (39,956) (17,989) -------- -------- -------- $ 52,052 $ 40,476 $ 32,696 ======== ======== ======== Interest Coverage Ratio 2.60 3.22 2.00 ======== ======== ======== (1) Income from continuing operations before income taxes (2) Preferred dividends expense of MCN allocated to MCN Investment which includes (a) dividends on the $100,000,000 of 9 3/8% redeemable preferred securities of MCN Michigan Limited Partnership, (b) dividends on the $132,250,000 of 8% FELINE PRIDES of MCN Financing III, (c) interest on the $130,000,000 of 6.82% Series Medium-Term Notes issued in conjunction with the $135,000,000 of 8% Preferred Redeemable Increased Dividend Equity Securities of MCN and (d) dividends on the $80,000,000 of 8 5/8% Trust Originated Preferred Securities of MCN Financing I.