Exhibit 11 HARRAH'S ENTERTAINMENT, INC. COMPUTATIONS OF PER SHARE EARNINGS First Quarter Ended March 31, March 31, 1996 1995 ------------ ------------ Income from continuing operations $ 31,410,000 $ 28,696,000 Discontinued operations Earnings from hotel operations, net - 9,604,000 Spin-off transaction expenses, net - (15,198,000) ------------ ------------ Net income $ 31,410,000 $ 23,102,000 ============ ============ Primary Earnings Per Share Weighted average number of common shares outstanding 102,597,657 102,138,377 Common stock equivalents Additional shares based on average market price for period applicable to: Restricted stock 53,002 199,635 Stock options 727,888 676,176 ------------ ------------ Average number of primary common and common equivalent shares outstanding 103,378,547 103,014,188 ============ ============ Primary earnings per common and common equivalent share Income from continuing operations $ 0.30 $ 0.28 Discontinued operations Earnings from hotel operations, net - 0.09 Spin-off transaction expenses,net - (0.15) ------------ ------------ Net income $ 0.30 $ 0.22 ============ ============ Fully Diluted Earnings Per Share Average number of primary common and common equivalent shares outstanding 103,378,547 103,014,188 Additional shares based on period-end price applicable to: Restricted stock 4,951 - Stock options 161,102 67,557 ------------ ------------ Average number of fully diluted common and common equivalent shares outstanding 103,544,600 103,081,745 ============ ============ Fully diluted earnings per common and common equivalent share Income from continuing operations $ 0.30 $ 0.28 Discontinued operations Earnings from hotel operations, net - 0.09 Spin-off transaction expenses, net - (0.15) ------------ ------------ Net income $ 0.30 $ 0.22 ============ ============ -40-