Changes in leverage will have a small effect on FCFE. For example , a decrease in leverage through a repayment of debt will decrease FCFE in the current year and increase forecasted FCFE in future years as interest expense is reduced.
But I recall a formula stating that :
According to this formula , decreaing in FCFE will also decrease FCFF .
So , now the logic is a decrease in leverage will decrease FCFE in the current year , which leads to a decrease in FCFF.
However, the note declares that changes in leverage have no effect of FCFF