EXHIBIT 11 MAXXAM INC. COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ---------------------------- --------------------------- 1998 1997 1998 1997 -------------- ------------- ------------- ------------- Weighted average common shares outstanding 7,000,597 8,531,457 7,000,597 8,593,856 Common equivalent shares attributable to stock options and convertible securities 828,522 768,040 812,720 769,339 -------------- ------------- ------------- ------------- Total common and common equivalent shares 7,829,119 9,299,497 7,813,317 9,363,195 ============== ============= ============= ============= Earnings per share information: Basic: Net income $ 1.76 $ 3.72 $ 2.04 $ 3.80 ============== ============= ============= ============= Diluted: Net income per common and common equivalent share $ 1.57 $ 3.42 $ 1.83 $ 3.49 ============== ============= ============= =============