Question 5 Financial leverage implies that As the amount of debt in the capital structure decreases, the increase in the EPS is greater for a given increase in sales. As the amount of debt in the capital structure decreases, the increase in the EPS is smaller for a given increase in sales. As the amount of debt in the capital structure decreases, the increase in the EPS is greater for a given increase in sales. As the amount of debt in the capital structure increases, the increase in the EPS is smaller for a given decrease in sales. As the amount of debt in the capital structure increases, the decrease in the EPS is greater for a given increase in sales. 3 pts