EXHIBIT 12
MERCK & CO., INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
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(In millions except ratio data)
Years Ended December 31
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1996 1995 1994 1993 1992 1991
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Income before Taxes and
Cumulative Effect of
Accounting Charges $5,540.8 $4,797.2 $4,415.2 $3,102.7 $3,563.6 $3,166.7
Add:
One-third of rents 41.0 28.1 36.0 35.0 34.0 31.1
Interest expense, net 103.2 60.3 96.0 48.0 23.6 26.0
Preferred stock dividends 70.0 2.1 - - - -
-------- -------- -------- -------- -------- --------
Earnings $5,755.0 $4,887.7 $4,547.2 $3,185.7 $3,621.2 $3,223.8
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One-third of rents $ 41.0 $ 28.1 $ 36.0 $ 35.0 $ 34.0 $ 31.1
Interest expense 138.6 98.7 124.4 84.7 72.7 68.7
Preferred stock dividends 70.0 2.1 - - - -
-------- -------- -------- -------- -------- --------
Fixed Charges $ 249.6 $ 128.9 $ 160.4 $ 119.7 $ 106.7 $ 99.8
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Ratio of Earnings
to Fixed Charges 23 38 28 27 34 32
== == == == == ==
For purposes of computing these ratios, "earnings" consist of income before
income taxes, cumulative effect of accounting changes, one-third of rents
(deemed by the Company to be representative of the interest factor inherent in
rents), interest expense, net of amounts capitalized, and dividends on preferred
stock of subsidiary companies. "Fixed charges" consist of one-third of rents,
interest expense as reported in the Company's consolidated financial statements
and dividends on preferred stock of subsidiary companies.