Assuming Rubber Round's current capital structure is all equity. If the company decides to borrow $500,000 from the bank, what is the likely effect on the cost of equity? 1) No change 2) The cost of equity will decrease proportionally with the cost of debt 3) The cost of equity will increase proportionally with the cost of debt 4) The cost of equity increase is not will increase with the increase of the debt but the level of proportional. 5) All of the above