EXHIBIT 11.2 HASBRO, INC. AND SUBSIDIARIES Computation of Earnings Per Common Share Quarter Ended June 30, 1996 and July 2, 1995 (Thousands of Dollars and Shares Except Per Share Data) 1996 1995 ----------------- ----------------- Fully Fully Primary Diluted Primary Diluted ------- ------- ------- ------- Net earnings (loss) $ 5,986 5,986 (14,893) (14,893) Interest and amortization on 6% convertible notes, net of taxes (a) - - - - ------- ------- ------- ------- Net earnings (loss) applicable to common shares $ 5,986 5,986 (14,893) (14,893) ======= ======= ======= ======= Weighted average number of shares outstanding:(b) Outstanding at beginning of period 87,068 87,068 87,635 87,635 Actual exercise of stock options and warrants 76 76 84 84 Assumed exercise of stock options and warrants 1,313 1,313 - - Actual conversion of 6% convertible notes 1 1 - - Assumed conversion of 6% convertible notes (a) - - - - Purchase of common stock (71) (71) - - ------- ------- ------- ------- Total 88,387 88,387 87,719 87,719 ======= ======= ======= ======= Per common share: Net earnings (loss) $ .07 .07 (.17) (.17) ======= ======= ======= ======= (a) The effect of these notes is antidilutive and as such is not included. (b) Computation to arrive at the average number is a weighted average computation.