<TABLE>
<CAPTION>
                                              MERRILL LYNCH PREFERRED CAPITAL TRUST II
                                              MERRILL LYNCH PREFERRED FUNDING II, L.P.
                                                COMPUTATION OF RATIOS OF EARNINGS TO
                                    COMBINED FIXED CHARGES AND PREFERRED SECURITIES DISTRIBUTIONS

                               For the Three Months Ended June 26, 1998              For the Three Months Ended June 27, 1997
                          ---------------------------------------------------   ---------------------------------------------------
                          Merrill Lynch Preferred     Merrill Lynch Preferred   Merrill Lynch Preferred     Merrill Lynch Preferred 
                               Capital Trust II         Funding II, L.P.             Capital Trust II         Funding II, L.P.      
                          -----------------------     -----------------------   -----------------------     -----------------------
<S>                                   <C>                        <C>                        <C>                        <C>          
Earnings                              $6,185,568                 $7,254,891                 $6,185,568                 $7,254,755   
                                      ==========                 ==========                 ==========                 ==========   
                                                                                                                                    
Fixed charges                         $     -                    $      -                   $     -                    $      -     
                                                                                                                                    
Preferred securities distribution                                                                                                   
  requirements                         6,000,000                  6,185,568                  6,000,000                  6,185,568   
                                      ----------                 ----------                 ----------                 ----------   
                                                                                                                                    
Total combined fixed charges and                                                                                                    
  preferred securities distributions  $6,000,000                 $6,185,568                 $6,000,000                 $6,185,568   
                                      ==========                 ==========                 ==========                 ==========   
                                                                                                                                    
Ratio of earnings to combined                                                                                                       
  fixed charges and preferred                                                                                                       
  securities distributions                  1.03                       1.17                       1.03                       1.17   

<CAPTION>
                                                                                                  For the Period
                                For the Six Months Ended June 26, 1998                   February 6, 1997 to June 27, 1997
                          ---------------------------------------------------   ---------------------------------------------------
                          Merrill Lynch Preferred     Merrill Lynch Preferred   Merrill Lynch Preferred     Merrill Lynch Preferred 
                               Capital Trust II         Funding II, L.P.             Capital Trust II         Funding II, L.P.      
                          -----------------------     -----------------------   -----------------------     -----------------------
<S>                                  <C>                        <C>                         <C>                        <C>          
Earnings                             $12,371,136                $14,508,404                 $9,896,909                $11,602,293
                                     ===========                ===========                 ==========                ===========
                                                                                                                                 
Fixed charges                        $      -                   $      -                    $     -                   $      -   
                                                                                                                                 
Preferred securities distribution                                                                                                
  requirements                        12,000,000                 12,371,136                  9,600,000                  9,896,909
                                     -----------                -----------                 ----------                -----------
                                                                                                                                 
Total combined fixed charges and                                                                                                 
  preferred securities distributions $12,000,000                $12,371,136                 $9,600,000                $ 9,896,909
                                     ===========                ===========                 ==========                ===========
                                                                                                                                 
Ratio of earnings to combined                                                                                                    
  fixed charges and preferred                                                                                                    
  securities distributions                  1.03                       1.17                       1.03                       1.17
</TABLE>