EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= Computation of Earnings Per Share --------------------------------- Amounts in Millions Except Per Share Amounts Three Months Ended September 30 1999 1998 ------- ------- BASIC NET EARNINGS PER SHARE Net earnings $ 1,147 $ 1,167 Deduct preferred stock dividends 30 25 ------- ------- Net earnings applicable to common stock $ 1,117 $ 1,142 ======= ======= Average number of common shares outstanding 1,316.5 1,332.4 ======= ======= Basic net earnings per share $ 0.85 $ 0.86 ======= ======= DILUTED NET EARNINGS PER SHARE Net earnings $ 1,147 $ 1,167 Deduct differential - preferred vs. common dividends 5 5 ------- ------- Net earnings applicable to common stock $ 1,142 $ 1,162 ======= ======= Average number of common shares outstanding 1,316.5 1,332.4 Add potential effect of: Exercise of options 23.3 24.0 Conversion of preferred stock 95.4 98.1 ------- ------- Average number of common shares outstanding, assuming dilution 1,435.2 1,454.5 ======= ======= Diluted earnings per share $ 0.80 $ 0.80 ======= =======