Exhibit 11
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(In Millions, Except Per Share Amounts)
Year Ended Last Friday in December
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1997 1996 1995 1994 1993
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(52 Weeks) (52 Weeks) (52 Weeks) (52 Weeks) (53 Weeks)
EARNINGS
Earnings before cumulative effect of
change in accounting principle $ 1,906 $ 1,619 $ 1,114 $ 1,017 $ 1,394
Cumulative effect of change in
accounting principle -- -- -- -- (35)
--------- --------- --------- --------- ---------
Net earnings 1,906 1,619 1,114 1,017 1,359
Preferred stock dividends (39) (47) (48) (13) (5)
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Net earnings applicable to
common stockholders $ 1,867 $ 1,572 $ 1,066 $ 1,004 $ 1,354
========= ========= ========= ========= =========
WEIGHTED-AVERAGE SHARES OUTSTANDING 331.4 337.8 353.1 391.3 418.6
--------- --------- --------- --------- ---------
EFFECT OF DILUTIVE INSTRUMENTS
Employee stock options 29.4 21.0 19.8 14.2 18.5
FCCAAP shares 20.6 18.8 18.7 14.0 12.8
Restricted units 5.3 4.6 2.3 2.5 3.7
ESPP shares -- 0.1 0.1 0.1 --
--------- --------- --------- --------- ---------
DILUTIVE POTENTIAL COMMON SHARES 55.3 44.5 40.9 30.8 35.0
--------- --------- --------- --------- ---------
TOTAL WEIGHTED-AVERAGE DILUTED SHARES 386.7 382.3 394.0 422.1 453.6
========= ========= ========= ========= =========
BASIC EARNINGS PER SHARE
Earnings before cumulative effect of
change in accounting principle $ 5.63 $ 4.65 $ 3.02 $ 2.57 $ 3.31
Cumulative effect of change in
accounting principle -- -- -- -- (.08)
--------- --------- --------- --------- ---------
Net earnings $ 5.63 $ 4.65 $ 3.02 $ 2.57 $ 3.23
========= ========= ========= ========= =========
DILUTED EARNINGS PER SHARE
Earnings before cumulative effect of
change in accounting principle $ 4.83 $ 4.11 $ 2.71 $ 2.38 $ 3.06
Cumulative effect of change in
accounting principle -- -- -- -- (.08)
--------- --------- --------- --------- ---------
Net earnings $ 4.83 $ 4.11 $ 2.71 $ 2.38 $ 2.98
========= ========= ========= ========= =========
Notes: All share and per share amounts have been restated for the two-for-one
common stock split, effected in the form of a 100% stock dividend, paid
on May 30, 1997.
Basic and diluted earnings per share are based on actual numbers before
rounding.