Which of the following statements about capital structure is/are correct? 1. According to Miller and Modigliani's second paper, an all-debt capital structure is considered to be optimal. 2. In practice, the level of debt companies take on will depend upon the industry in which they operate 3. Debt holders face financial risk as a company increases its gearing level. O A. (1) is correct B.(1) and (2) are correct O C. (2) is correct O 0.(2) and (3) are correct E. All three statements are correct