BONUS. Dillards is considering issuing $3.25 million in bonds. The finance department states that issuing the bonds will decrease the value of the firm. Accordingly, you know the finance department believes the firm: a) currently is all-equity financed and adding debt will cause a decrease in firm value. b) wants to issue too few bonds to obtain the most benefit from debt. c) will suffer from a decrease in its WACC if the bonds are issued..