EXHIBIT 11 MERRILL LYNCH & CO., INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE (in millions, except per share amounts) FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED ---------------------------- -------------------------- SEPT. 29, SEPT.24, SEPT. 29, SEPT. 24, 2000 1999 2000 1999 -------- -------- -------- -------- EARNINGS Net earnings $ 885 $ 579 $ 2,907 $ 1,900 Preferred stock dividends (10) (8) (29) (28) ------- ------- ------- ------- Net earnings applicable to common stockholders $ 875 $ 571 $ 2,878 $ 1,872 ======= ======= ======= ======= WEIGHTED-AVERAGE SHARES OUTSTANDING 805.9 757.9 793.7 752.4 ------- ------- ------- ------- EFFECT OF DILUTIVE INSTRUMENTS Employee stock options 75.2 54.2 67.7 58.7 FCCAAP shares 30.6 32.4 29.4 32.9 Restricted units 17.3 10.8 14.1 10.6 ESPP shares - - 0.1 0.1 ------- ------- ------- ------- DILUTIVE POTENTIAL COMMON SHARES 123.1 97.4 111.3 102.3 ------- ------- ------- ------- TOTAL WEIGHTED-AVERAGE DILUTED SHARES 929.0 855.3 905.0 854.7 ======= ======= ======= ======= BASIC EARNINGS PER SHARE $ 1.09 $ 0.75 $ 3.63 $ 2.49 ======= ======= ======= ======= DILUTED EARNINGS PER SHARE $ 0.94 $ 0.67 $ 3.18 $ 2.19 ======= ======= ======= ======= Note: Prior period amounts have been restated to reflect the merger with Herzog, Heine, Geduld, Inc. as required under pooling-of-interests accounting and the 2-for-1 common stock split paid on August 31, 2000. Basic and diluted earnings per share are based on actual numbers before rounding.