which of the following statement is correct?

1) High Debt to equity ratio can help to reduce the conflict between debt holders and shareholders

2) Asset Substitution is a strategy, with which the debt holders benefit from the lost of the shareholders

3) Due to a high leverage ratio, a firm might gave up a positive NPV project. This problem can be solved by issuing senior debt.

4) Debt holders prefer risky projects, while shareholders prefer safe projects