EXHIBIT 11 MAXXAM INC. COMPUTATION OF NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, --------------------------- -------------------------- 1998 1997 1998 1997 ------------ ------------ ------------ ------------ Weighted average common shares outstanding 7,000,597 8,289,722 7,000,597 8,491,364 Common equivalent shares attributable to stock options and convertible securities - 804,517 816,018 781,064 ------------ ------------ ------------ ------------ Total common and common equivalent shares 7,000,597 9,094,239 7,816,615 9,272,428 ============ ============ ============ ============ Earnings per share information: Basic: Net income (loss) $ (6.35) $ 2.17 $ (4.31) $ 5.96 ============ ============ ============ ============ Diluted: Net income (loss) per common and common equivalent share $ (6.35) $ 1.98 $ (3.86) $ 5.46 ============ ============ ============ ============