JetBlue Airways Corporation reports the following data in its 2016 10-K. The data relate to the corporation's computation of its earnings per share calculations. (Dollar and share data are in millions.)

REQUIRED:

a. What is the objective behind the calculation of diluted EPS?

b. Calculate JetBlue's basic EPS.

c. Calculate JetBlue's diluted EPS.

d. In 2014, JetBlue stated that it excluded 6.9 million stock options from the computation of diluted EPS. Under what circumstances would this be appropriate?

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Numerator: 2016 Net income.... $759 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit shaning...... 2 Net income applicable to common stockholders after assumed conversions for diluted earnings per share... $761 Denominator: Weighted average shares outstanding for basic earnings per share. Effect of dilutive securities: 326.5 Employee stock options and restricted stock units. Convertible debt.... 2.1 13.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share .. 342.2