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 ------------------------------------------------------------------------------ 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- (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) --------- --------- --------- --------- --------- 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.