EXHIBIT 11 MAXXAM INC. COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE (In millions of dollars, except share and per share amounts) Three Months Ended Six Months Ended June 30, June 30, ---------------------------- --------------------------- 1997 1996 1997 1996 -------------- ------------- ------------- ------------- Weighted average common and common equivalent shares outstanding during each period 9,200,313 9,376,703 9,262,712 9,376,703 Common equivalent shares attributable to stock options and convertible securities 94,843 94,511 98,312 93,074 -------------- ------------- ------------- ------------- Weighted average common and common equivalent shares 9,295,156 9,471,214 9,361,024 9,469,777 ============== ============= ============= ============= Net income $ 31.9 $ 16.9 $ 32.6 $ 22.7 ============== ============= ============= ============= Net income per common and common equivalent share $ 3.43 $ 1.78 $ 3.48 $ 2.40 ============== ============= ============= =============