Jensen & Meckling $(1976)$ argue that capital structure has important implications for conflict between stockholders and bondholders. Which of the following statements correctly describe Jensen & Mecklings$$ arguments about these agency issues?

$($i$)$ More debt in the capital structure encourages managers to consume more perquisites.

$($ii$)$ More debt in the capital structure creates incentives for stockholders to invest in less risky projects.

$($iii$)$ More debt in the capital structure creates increased interest obligations, which make it difficult for managers to retain funds in the firm.

Group of answer choices

Only $($ii$)$ and $($iii$)$ are true.

Only $($iii$)$ is true.

None are true.

Only $($ii$)$ and $($iii$)$ are true.

Only $($i$)$ is true.