EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= COMPUTATION OF EARNINGS PER SHARE --------------------------------- Dollars and Share Amounts in Millions Three Months Ended Six Months Ended December 31 December 31 ---------------------- --------------------- NET EARNINGS PER SHARE 1995 1994 1995 1994 - ---------------------- -------- -------- -------- -------- Net earnings $ 836 $ 750 $1,732 $1,542 Deduct preferred stock dividends 26 26 52 51 -------- -------- -------- -------- Net earnings applicable to common stock $ 810 $ 724 $1,680 $1,491 - --------------------------------------- ======== ======== ======== ======== Average number of common shares outstanding 686.5 685.2 686.5 685.2 Per Share - ------------ Net earnings per share $ 1.18 $ 1.06 $ 2.45 $ 2.18 ======== ======== ======== ======== NET EARNINGS PER SHARE ASSUMING FULL DILUTION - ------------------------------- Net earnings $ 836 $ 750 $1,732 $1,542 Deduct differential -- preferred vs. common dividends 10 11 20 23 -------- -------- -------- -------- Net earnings applicable to common stock $ 826 $ 739 $1,712 $1,519 - --------------------------------------- ======== ======== ======== ======== Average number of common shares outstanding 686.5 685.2 686.5 685.2 Add potential effect of: Exercise of options 9.4 7.4 9.4 7.4 Conversion of preferred stock 52.1 53.0 52.1 53.0 -------- -------- -------- -------- Average number of common shares outstanding, assuming full dilution 748.0 745.6 748.0 745.6 ======== ======== ======== ======== Per share assuming full dilution - -------------------------------- Net earnings per share assuming full dilution 1.11 $ .99 2.29 $ 2.04 ======== ======== ======== ======== -9-