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EXHIBIT 11.
MICROSOFT CORPORATION
COMPUTATION OF EARNINGS PER SHARE
(In millions, except earnings per share) (Unaudited)
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Three Months Ended Nine Months Ended
March 31 March 31
1995 1996 1995 1996
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Weighted average number of common shares outstanding 582 593 581 590
Common stock equivalents from outstanding stock options 44 46 43 49
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Average common and common stock equivalents outstanding 626 639 624 639
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Net income $ 396 $ 562 $1,085 $1,636
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Earnings per share (1) $0.63 $0.88 $ 1.74 $ 2.56
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(1) Fully diluted earnings per share have not been presented because the effects
are not material.
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