EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended -------------------- March 28, 1997 March 29, 1996 -------------- -------------- (In thousands except per share amounts) Net earnings applicable to common stock: Net earnings $6,181 $5,585 ========== ========== Average number of common and common equivalent shares outstanding: Average number of common shares outstanding 17,106 17,315 Dilutive effect of stock options computed on the treasury stock method 397 238 ---------- ---------- 17,503 17,553 ========== ========== Net earnings per common and common equivalent share $.35 $.32 ========== ========== Primary and fully diluted earnings per share are substantially the same.