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)
Fiscal Year
1998 1997 1996
-------- -------- --------
Ratio of Earnings to Fixed Charges
Earnings:
Income before income taxes(l) $5,385 $4,274 $3,117
Add: Fixed charges, net 13,614 10,898 9,026
-------- -------- --------
Income before income taxes and
fixed charges, net $18,999 $15,172 $12,143
======== ======== ========
Fixed charges:
Total interest expense $13,514 $10,806 $8,934
Interest factor in rents 100 92 92
-------- -------- --------
Total fixed charges $13,614 $10,898 $9,026
======== ======== ========
Ratio of earnings to fixed charges 1.4 1.4 1.3
Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends
Earnings:
Income before income taxes(l) $5,385 $4,274 $3,117
Add: Fixed charges, net 13,614 10,898 9,026
-------- -------- --------
Income before income taxes and
fixed charges, net $18,999 $15,172 $12,143
======== ======== ========
Fixed charges:
Total interest expense $13,514 $10,806 $8,934
Interest factor in rents 100 92 92
Preferred stock dividends 87 110 101
-------- -------- --------
Total fixed charges and preferred
stock dividends $13,701 $11,008 $9,127
======== ======== ========
Ratio of earnings to fixed charges and
preferred stock dividends 1.4 1.4 1.3
/(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.