3 ts KMS corporation has assets of $700 million $140 million of which are cash It has debt of $175 million. If KMS repurchases $46.7 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.) so cer O A. Both the cash balance and shareholder equity will trop by $46.7 million O B. Both the cash balance and shareholder equity will increase by $467 million OC. Debt will increase by $46.7 million and shareholder equity will decrease by $467 million OD. Both accounts receivable and shareholder equity will drop by $46.7 million b. What will be its new leverage ratio? The new leverage ratio after the repurchase is % (Round to one decimal place) ter tice ner Click to select your answer(s)