EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= COMPUTATION OF EARNINGS PER SHARE --------------------------------- Dollars and Share Amounts in Millions Three Months Ended September 30 NET EARNINGS PER SHARE 1994 1993 - - - ---------------------- ------ ------ Net earnings $ 792 $ 670 Deduct preferred stock dividends 26 25 ------ ------ Net earnings applicable to common stock $ 766 $ 645 - - - --------------------------------------- ====== ====== Average number of common shares outstanding 684.7 682.0 Per Share - - - --------- Net earnings per share $ 1.12 $ .95 ====== ====== NET EARNINGS PER SHARE ASSUMING FULL DILUTION - - - ------------------------------- Net earnings $ 792 $ 670 Deduct differential -- preferred vs. common dividends 11 12 ------ ------ Net earnings applicable to common stock $ 781 $ 658 - - - --------------------------------------- ====== ====== Average number of common shares outstanding 684.7 682.0 Add potential effect of: Exercise of options 6.5 6.2 Conversion of preferred stock 53.2 54.3 ------ ------ Average number of common shares outstanding, assuming full dilution 744.4 742.5 ====== ====== Per share assuming full dilution - - - -------------------------------- Net earnings per share assuming full dilution $1.05 $ .89 ====== ====== -10-