Answer a and b please.

KMS corporation has assets of $500 million, $50 million of which are cash. It has debt of $200 million. If KMS repurchases $20 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 $20 million. O B. Both accounts receivable and shareholder equity will drop by $20 million. O C. Both the cash balance and shareholder equity will increase by $20 million. OD. Debt will increase by $20 million and shareholder equity will decrease by $20 million