EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= COMPUTATION OF EARNINGS PER SHARE --------------------------------- Amounts in Millions, Except per Share Amounts Three Months Ended Nine Months Ended March 31 March 31 ------------------ ----------------- BASIC EARNINGS PER SHARE 1998 1997 1998 1997 - ------------------------ ------ ------ ------ ------ Net earnings $ 961 $ 881 $3,093 $2,804 Deduct preferred stock dividends 26 26 78 78 ------ ------ ------ ------ Net earnings applicable to common stock $ 935 $ 855 $3,015 $2,726 - --------------------------------------- ====== ====== ====== ====== Average number of common shares outstanding 1,344.9 1,362.8 1,344.9 1,362.8 Per Share - ------------ Basic earnings per share $ .69 $ .63 $ 2.24 $ 2.00 ====== ====== ====== ====== DILUTIVE EARNINGS PER SHARE - --------------------------- Net earnings $ 961 $ 881 $3,093 $2,804 Deduct differential -- preferred vs. common dividends 6 8 19 24 ------ ------ ------ ------ Net earnings applicable to common stock $ 955 $ 873 $3,074 $2,780 - --------------------------------------- ====== ====== ====== ====== Average number of common shares outstanding 1,344.9 1,362.8 1,344.9 1,362.8 Add potential effect of: Exercise of options 22.6 21.4 22.6 21.4 Conversion of preferred stock 100.0 102.0 100.0 102.0 ------ ------ ------ ------ Average number of common shares outstanding, assuming dilution 1,467.5 1,486.2 1,467.5 1,486.2 ======= ======= ======= ======= Dilutive earnings per share $ .65 $ .59 $ 2.09 $ 1.87 ====== ====== ====== ======