KMS corporation has assets of $700 million, $140 million of which are cash. It has debt of $233.4 million. If KMS repurchases $70 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 increase by $70 million. OB. Both the cash balance and shareholder equity will drop by $70 million. O C. Debt will increase by $ 70 million and shareholder equity will decrease by $70 million. O D. Both accounts receivable and shareholder equity will drop by $70 million. b. What will be its new leverage ratio? The new leverage ratio after the repurchase is %. (Round to one decimal place.)