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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 SIX MONTHS ENDED
DECEMBER 31 DECEMBER 31
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1995 1996 1995 1996
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Weighted average number of common shares outstanding 1,180 1,196 1,180 1,195
Common stock equivalents - stock options 96 107 98 104
Common stock equivalents - preferred stock 1
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Average common and common stock equivalents outstanding (1) 1,276 1,304 1,278 1,299
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Net income $ 575 $ 741 $1,074 $1,355
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Earnings per share (1) (2) $ 0.45 $ 0.57 $ 0.84 $ 1.04
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(1) Share and per share amounts for the three and six months ended December
31, 1995 have been restated to reflect a two-for-one stock split in
December 1996.
(2) Fully diluted earnings per share have not been presented because the
effects are not material.
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