RENTERS CHOICE, INC. AND SUBSIDIARY COMPUTATION OF EARNINGS PER COMMON SHARE DECEMBER 31, 1996 THREE MONTHS ENDED YEAR ENDED ------------------ ---------- PRIMARY EARNINGS PER SHARE Net Earnings ..................................... $ 5,311,172 $18,026,302 Weighted average number of common shares ......... 24,758,481 24,655,675 outstanding Net effect of dilutive stock options based on the treasury stock method using average market price ....................... 327,942 407,254 Weighted average number of common and common equivalent shares outstanding .............. 25,113,423 25,064,930 PRIMARY EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE .................... $ 0.21 $ 0.72 FULLY DILUTED EARNINGS PER SHARE Net earnings ..................................... $ 5,311,172 $18,026,302 Weighted average number of common shares ......... 24,758,481 24,655,675 outstanding Net effect of dilutive stock options based on the treasury stock method using the greater of the average or ending market price ...................................... 327,942 429,175 Weighted average number of common and common equivalent shares outstanding .............. 25,113,423 25,084,851 EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE ASSUMING FULL DILUTION ................................... $ 0.21 $ 0.72 ----------- -----------