A firm's payout ratio rose from $12\%$ to $18\%.$ Based on this increase, which of the following statements is correct?

a$.$ Dividends will not change, and the need for external capital is not impacted.

b$.$ Dividends will decrease, leaving more income to fund new assets, which decreases the need for external capital.

c$.$ Dividends will increase, leaving more income to fund new assets, which decreases the need for external capital.

d$.$ Dividends will increase, leaving less income to fund new assets, which increases the need for external capital.