1 EXHIBIT 11 WATERHOUSE INVESTOR SERVICES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARES NINE MONTHS ENDED NINE MONTHS ENDED MAY 31, 1996 MAY 31, 1995 PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED ------- ------------- ------- ------------- Weighted average number of common shares outstanding during the period 11,710,838 11,710,838 11,751,798 11,751,798 Weighted average number of common shares issuable assuming full conversion of 6% convertible subordinated notes -- 2,072,009 -- 2,072,650 Weighted average number of common shares held in treasury (250,002) (250,002) (250,002) (250,002) Common shares issuable assuming stock options outstanding were exercised at the beginning of the period 341,500 436,254 28,355 65,405 ----------- ----------- ----------- ----------- Weighted average number of common and common equivalent shares outstanding at end of period 11,802,336 13,969,099 11,530,151 13,639,851 =========== =========== =========== =========== Earnings applicable for common shares $22,770,002 $24,004,914 $12,860,870 $14,126,719 Earnings per common and common equivalent $ 1.93 $ 1.72 $ 1.12 $ 1.04 shares