Answer a and b please.

KMS corporation has assets of $850 million, $170 million of which are cash. It has debt of $212.5 million. If KMS repurchases $56.7 million of its stock: a. What changes will occur on its balance sheet? b. What will be its new leverage ratio? a. What changes will occur on its balance sheet? (Select the best choice below.) O A. Both the cash balance and shareholder equity will drop by $56.7 million. OB. Debt will increase by $56.7 million and shareholder equity will decrease by $56.7 million. O C. Both accounts receivable and shareholder equity will drop by $56.7 million. OD. Both the cash balance and shareholder equity will increase by $56.7 million