EX-12.B 23 jun1102_ex12b.txt Exhibit 12-b MORGAN STANLEY DEAN WITTER & CO. Ratio of Earnings to Fixed Charges and Preferred Stock Dividends (Dollars in millions) Three Months Ended Fiscal Year February 28, February 28, 2002 2001 2001 2000 1999 1998 1997 ------------ ------------ ---- ---- ---- ---- ---- Earnings: Income before income taxes (l) $1,347 $1,700 $5,734 $8,554 $7,756 $5,405 $4,274 Add: Fixed charges, net 2,980 6,219 20,891 18,306 12,598 13,544 10,898 ------ ------ ------- ------- ------- ------- ------- Income before income taxes and fixed charges, net $4,327 $7,919 $26,625 $26,860 $20,354 $18,949 $15,172 ====== ====== ======= ======= ======= ======= ======= Fixed charges: Total interest expense $2,936 $6,175 $20,755 $18,155 $12,487 $13,444 $10,806 Interest factor in rents 44 47 162 154 111 100 92 Dividends on preferred securities issued by subsidiaries 22 7 50 28 28 20 --- Preferred stock dividends --- 14 50 56 72 87 110 ------ ------ ------- ------- ------- ------- ------- Total fixed charges and preferred stock dividends $3,002 $6,243 $21,017 $18,393 $12,698 $13,651 $11,008 ====== ====== ======= ======= ======= ======= ======= Ratio of earnings to fixed charges and preferred stock dividends 1.4 1.3 1.3 1.5 1.6 1.4 1.4 (1) Fiscal 2001 income before income taxes does not include an extraordinary item or the cumulative effect of accounting change. Fiscal 1998 income before income taxes does not include a cumulative effect of accounting change. "Earnings" consist of income before income taxes and fixed charges, less dividends on preferred securities issued by subsidiaries. "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 earning required to cover dividends on preferred stock.