EXHIBIT 12 MERRILL LYNCH PREFERRED CAPITAL TRUST IV MERRILL LYNCH PREFERRED FUNDING IV, L.P. COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SECURITIES DISTRIBUTIONS (dollars in thousands) FOR THE THREE MONTHS ENDED FOR THE THREE MONTHS ENDED SEPTEMBER 24, 1999 SEPTEMBER 25, 1998 ------------------------------------ --------------------------------------- MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH PREFERRED PREFERRED PREFERRED PREFERRED CAPITAL TRUST IV FUNDING IV, L.P. CAPITAL TRUST IV FUNDING IV, L.P. ---------------- ---------------- ---------------- ---------------- Earnings $ 7,340 $ 8,602 $ 8,238 $ 8,616 ======== ======== ======== ======== Fixed charges $ - $ - $ - $ - Preferred securities distribution requirements 7,120 7,340 7,990 8,238 -------- -------- -------- -------- Total combined fixed charges and preferred securities distributions $ 7,120 $ 7,340 $ 7,990 $ 8,238 ======== ======== ======== ======== Ratio of earnings to combined fixed charges and preferred securities distributions 1.03 1.17 1.03 1.05 FOR THE NINE MONTHS ENDED FOR THE PERIOD JUNE 19, 1998 SEPTEMBER 24, 1999 TO SEPTEMBER 25, 1998 ------------------------------------ ------------------------------------ MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH PREFERRED PREFERRED PREFERRED PREFERRED CAPITAL TRUST IV FUNDING IV, L.P. CAPITAL TRUST IV FUNDING IV, L.P. ---------------- ---------------- ---------------- ---------------- Earnings $ 22,020 $ 25,810 $ 8,238 $ 9,661 ======== ======== ======== ======== Fixed charges $ - $ - $ - $ - Preferred securities distribution requirements 21,360 22,020 7,990 8,238 -------- -------- -------- -------- Total combined fixed charges and preferred securities distributions $ 21,360 $ 22,020 $ 7,990 $ 8,238 ======== ======== ======== ======== Ratio of earnings to combined fixed charges and preferred securities distributions 1.03 1.17 1.03 1.17