MCN INVESTMENT CORPORATION AND SUBSIDIARIES EXHIBIT 12-2
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
Twelve Months Twelve Months Twelve Months
Ended Ended Ended
September 30, 1996 December 31, 1995 December 31, 1994
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EARNINGS AS DEFINED (1) (4)
Pre-tax income (2) $ 14,535 $ 13,163 $ 6,696
Fixed charges (3) 37,225 24,748 13,640
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Earnings as defined $ 51,760 $ 37,911 $ 20,336
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FIXED CHARGES AS DEFINED (1) (4)
Interest, expensed $ 36,246 $ 24,151 $ 13,365
Interest, capitalized 7,570 5,895 2,089
Amortization of debt discounts,
premium and expense 882 520 275
Interest implicit in rentals 97 77 -
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Fixed charges as defined $ 44,795 $ 30,643 $ 15,729
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Ratio of Earnings to Fixed Charges 1.16 1.24 1.29
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(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 and, therefore, may differ from fixed charges as defined.
(4) In June 1996, MCN completed the sale of The Genix Group, its computer
services 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.