Exhibit 11
Morgan Stanley Dean Witter & Co.
Computation of Earnings Per Share
(in millions, except share and per share data)
Three Months Ended Six Months Ended
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May 31, May 31, May 31, May 31,
2001 2000 2001 2000
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Basic:
Weighted-average common shares outstanding 1,085,305,558 1,098,245,490 1,087,205,706 1,096,007,767
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Earnings:
Income before cumulative effect of accounting change $930 $1,458 $2,005 $3,002
Cumulative effect of accounting change -- -- (59) --
Less: Preferred stock dividend
requirements (9) (9) (18) (18)
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Earnings applicable to common shares $921 $1,449 $1,928 $2,984
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Basic EPS before cumulative effect of accounting change $0.85 $1.32 $1.83 $2.72
Cumulative effect of accounting change -- -- (0.05)
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Basic earnings per share $0.85 $1.32 $1.78 $2.72
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Diluted:
Weighted-average common shares outstanding 1,085,305,558 1,098,245,490 1,087,205,706 1,096,007,767
Average common shares issuable
under employee benefit plans 35,172,230 47,155,819 39,817,663 46,409,180
Average common shares issuable upon
conversion of convertible notes 209,409 -- 105,855 --
Average common shares issuable upon
conversion of ESOP preferred stock(1) -- -- -- 3,905,822
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Total weighted-average diluted shares 1,120,687,197 1,145,401,309 1,127,129,224 1,146,322,769
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Earnings:
Income before cumulative effect of accounting change $930 $1,458 $2,005 $3,002
Cumulative effect of accounting change -- -- (59) --
Less: Preferred stock dividend
requirements (9) (9) (18) (18)
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Earnings applicable to common shares $921 $1,449 $1,928 $2,984
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Diluted EPS before cumulative effect of accounting change $0.82 $1.26 $1.76 $2.60
Cumulative effect of accounting change -- -- (0.05) --
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Diluted earnings per share $0.82 $1.26 $1.71 $2.60
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(1) All shares of ESOP preferred stock were converted to common stock on
January 3, 2000.