Exhibit 12
Morgan Stanley Dean Witter & Co.
Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(Dollars in millions)
Three Months Ended Nine Months Ended Fiscal Year
--------------------------- --------------------- -----------------------------
August 31 August 31 August 31 August 31
2000 1999 2000 1999 1999 1998 1997
--------------------------- --------------------- -----------------------------
Ratio of Earnings to Fixed Charges
Earnings:
Income before income taxes(1) $1,910 $1,563 $6,637 $5,093 $7,728 $5,385 $4,274
Add: Fixed charges, net 5,283 3,215 13,704 9,429 12,725 13,614 10,898
---------- --------- -------- -------- -------- -------- --------
Income before income taxes and
fixed charges, net $7,193 $4,778 $20,341 $14,522 $20,453 $18,999 $15,172
========== ========= ======== ======== ======== ======== ========
Fixed charges:
Total interest expense $5,242 $3,184 $13,594 $9,341 $12,616 $13,514 $10,806
Interest factor in rents 41 31 110 88 109 100 92
---------- --------- -------- -------- -------- -------- --------
Total fixed charges $5,283 $3,215 $13,704 $9,429 $12,725 $13,614 $10,898
========== ========= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges 1.4 1.5 1.5 1.5 1.6 1.4 1.4
Ratio of earnings to Fixed Charges and
Preferred Stock Dividends
Earnings:
Income before income taxes(1) $1,910 $1,563 $6,637 $5,093 $7,728 $5,385 $4,274
Add: Fixed charges, net 5,283 3,215 13,704 9,429 12,725 13,614 10,898
---------- --------- -------- -------- -------- -------- --------
Income before income taxes and
fixed charges, net $7,193 $4,778 $20,341 $14,522 $20,453 $18,999 $15,172
========== ========= ======== ======== ======== ======== ========
Fixed charges:
Total interest expense $5,242 $3,184 $13,594 $9,341 $12,616 $13,514 $10,806
Interest factor in rents 41 31 110 88 109 100 92
Preferred stock dividends 14 18 42 53 72 87 110
---------- --------- -------- -------- -------- -------- --------
Total fixed charges and preferred
stock dividends $5,297 $3,233 $13,746 $9,482 $12,797 $13,701 $11,008
========== ========= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges and
preferred stock dividends 1.4 1.5 1.5 1.5 1.6 1.4 1.4
(1)1998 Income before income taxes does not include a cumulative effect of
accounting change.
"Earnings" consist of income before income taxes and fixed charges. "Fixed
charges" consist of interest costs, including interest on deposits, and that
portion of rent expense estimated to be representative of the interest factor.
The preferred stock dividend amounts represent pre-tax earnings required to
cover dividends on preferred stock.