EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= Computation of Earnings Per Share --------------------------------------------- Dollars and Share Amounts in Millions Three Months Ended Nine Months Ended March 31 March 31 ------------------ ----------------- NET EARNINGS PER SHARE 1994 1993 1994 1993 - - ---------------------- ------ ------ ------ ------ Net Earnings $ 482 $ 502 $1,805 $ 563 Deduct preferred stock dividends 26 24 76 73 ------ ------ ------ ------ Net Earnings Applicable to Common Stock 456 478 1,729 490 - - --------------------------------------- ====== ====== ====== ====== Average number of common shares outstanding 682.7 680.0 682.7 680.0 Per Share - - --------- Net earnings before prior years' effect of accounting changes $ .66 $ .70 $ 2.53 $ 2.08 Prior years' effect of accounting changes -- -- -- (1.36) ------ ------ ------ ------ Net Earnings per share $ .66 $ .70 $ 2.53 $ .72 ====== ====== ====== ====== NET EARNINGS PER SHARE ASSUMING FULL DILUTION - - ------------------------------- Net Earnings $ 482 $ 502 $1,805 $ 563 Deduct differential -- preferred vs. common dividends 13 14 39 43 ------ ------ ------ ------ Net Earnings/(Loss) Applicable to Common Stock $ 469 $ 488 $1,766 $ 520 - - ---------------------------------------------- ====== ====== ====== ====== Average number of common shares outstanding 682.7 680.0 682.7 680.0 Add potential effect of: Exercise of options 6.1 7.1 6.1 7.1 Conversion of preferred stock 54.1 54.8 54.1 54.8 ------ ------ ------ ------ Average number of common shares outstanding, assuming full dilution 742.9 741.9 742.9 741.9 ====== ====== ====== ====== Per Share Assuming full dilution - - ----------------------------------------- Net earnings before prior years' effect of accounting changes $ .64 $ .66 $ 2.38 $ 1.95 Prior years' effect of accounting changes -- -- -- (1.24) ------ ------ ------ ------ Net Earnings $ .64 $ .66 $ 2.38 $ .71 ====== ====== ====== ====== <FN> NOTE: 1993 has been restated to reflect the retroactive adoption of accounting changes related to postretirement benefits and income tax accounting. -8-