MERRILL LYNCH PREFERRED CAPITAL TRUST I
                     MERRILL LYNCH PREFERRED FUNDING I, L.P.
                      COMPUTATION OF RATIOS OF EARNINGS TO
          COMBINED FIXED CHARGES AND PREFERRED SECURITIES DISTRIBUTIONS

<TABLE>
<CAPTION>

                                   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 I           Funding I, L.P.          Capital Trust I           Funding I, L.P.    
                               -----------------------   -----------------------  -----------------------   -----------------------
<S>                                <C>                        <C>                     <C>                        <C>  
Earnings                           $      5,492,913           $     6,450,455         $      5,492,913           $     6,442,925   
                                   ================           ===============         ================           ===============   
                                                                                                                                   
Fixed charges                      $         -                $          -            $         -                $          -      
                                                                                                                                   
Preferred securities                                                                                                               
  distribution requirements               5,328,125                 5,492,913                5,328,125                 5,492,913   
                                   ----------------           ---------------         ----------------           ---------------   
                                                                                                                                   
Total combined fixed charges                                                                                                       
  and preferred securities                                                                                                         
  distributions                    $      5,328,125           $     5,492,913         $      5,328,125           $     5,492,913   
                                   ================           ===============         ================           ===============   
                                                                                                                                   
Ratio of earnings to combined                                                                                                      
  fixed charges and preferred                                                                                                      
  securities distributions                     1.03                      1.17                     1.03                      1.17   
                                                                                                                                   
<CAPTION>
                                                                                                                                   
                                    For the Six Months Ended June 26, 1998             For the Six Months Ended June 26, 1997      
                               -------------------------------------------------  -------------------------------------------------
                               Merrill Lynch Preferred   Merrill Lynch Preferred  Merrill Lynch Preferred   Merrill Lynch Preferred
                                   Capital Trust I           Funding I, L.P.          Capital Trust I           Funding I, L.P.    
                               -----------------------   -----------------------  -----------------------   -----------------------
<S>                                <C>                        <C>                     <C>                        <C>    
Earnings                           $     10,985,826           $    12,892,445         $     11,108,284           $    13,028,351   
                                   ================           ===============         ================           ===============   
                                                                                                                                   
Fixed charges                      $         -                $         -             $         -                $         -       
                                                                                                                                   
Preferred securities                                                                                                               
  distribution requirements              10,656,250                10,985,826               10,656,250                10,985,826   
                                   ----------------           ---------------         ----------------           ---------------   
                                                                                                                                   
Total combined fixed charges                                                                                                       
  and preferred securities                                                                                                         
  distributions                    $     10,656,250           $    10,985,826         $     10,656,250           $    10,985,826   
                                   ================           ===============         ================           ===============   
                                                                                                                                   
Ratio of earnings to combined                                                                                                      
  fixed charges and preferred                                                                                                      
  securities distributions                     1.03                      1.17                     1.04                      1.19   
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