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

<TABLE>
<CAPTION>
                                         For the Three Months Ended September 25, 1998
                                       --------------------------------------------------
                                       Merrill Lynch Preferred    Merrill Lynch Preferred
                                          Capital Trust IV            Funding IV, L.P.
                                       -----------------------    -----------------------
<S>                                          <C>                         <C>         
Earnings                                     $ 8,237,543                 $ 8,615,799 
                                             ===========                 ===========
                                                                         
Fixed charges                                $        --                 $        --
                                                                         
Preferred securities distribution                                        
  requirements                                 7,990,400                   8,237,543
                                             -----------                 -----------
                                                                         
Total combined fixed charges and                                         
  preferred securities distributions         $ 7,990,400                 $ 8,237,543
                                             ===========                 ===========
                                                                         
Ratio of earnings to combined                                            
  fixed charges and preferred                                            
  securities distributions                          1.03                        1.05

<CAPTION>
                                       For the Period June 19, 1998 to September 25, 1998
                                       --------------------------------------------------
                                       Merrill Lynch Preferred    Merrill Lynch Preferred
                                          Capital Trust IV            Funding IV, L.P.
                                       -----------------------    -----------------------
<S>                                          <C>                         <C>         
Earnings                                      $ 8,237,543                $ 9,660,701 
                                              ===========                ===========

Fixed charges                                 $        --                $        --

Preferred securities distribution                                        
  requirements                                  7,990,400                  8,237,543
                                              -----------                -----------

Total combined fixed charges and                                         
  preferred securities distributions          $ 7,990,400                $ 8,237,543
                                              ===========                ===========

Ratio of earnings to combined                                            
  fixed charges and preferred                                            
  securities distributions                           1.03                       1.17
</TABLE>