The Following Information Relates to Yutter Corporation -If Yutter's Dividend Payout Ratio Increased to 50% After Year

The following information relates to Yutter Corporation:
$\begin{array}{lr}&\text { Year } 1\\\text { Net income-year ended } 12 / 31 & \$ 12,500 \\\text { Dividends } & 3,000 \\\text { Return on net operating assets } & 13 \% \\\text { Return on equity } & 15 \% \\\text { Cost of equity } & 12 \%\end{array}$
-If Yutter's dividend payout ratio increased to 50% after year 1 then:

A) the sustainable equity growth rate would increase.
B) the return on equity would decrease.
C) the value of the stock would decrease.
D) the return on net operating assets would decrease.