Which of the following statements about existing theories of capital structure is/are correct?

1) The rules of the pecking order theory advise that a firm should only issue debt after exhausting internal sources of financing

2) According to the traditional version of the static trade-off theory, a firm's WACC will be minimized when the marginal cost of financial distress is outweighed by the marginal tax benefit of debt

3) Unlike the pecking-order theory, the static trade-off theory predicts that more profitable firms will use less debt