KMS corporation has assets of $550 million, $110 million of which are cash. It has debt of $183.4 million. If KMS repurchases $36.7 million of its stock: a. What changes will occur on its balance sheet? b. What will its new leverage ratio be? a. What changes will occur on its balance sheet? (Select the best choice below) O A. Both the cash balance and shareholder equity will increase by $36.7 million O B. Both accounts receivable and shareholder equity will drop by $36.7 million OC. Both the cash balance and shareholder equity will drop by $36.7 million OD. Debt will increase by $36.7 million and shareholder equity will decrease by $36.7 million b. What will be its new leverage ratio? The new leverage ratio after the repurchase is [%. (Round to one decimal place.)