FCFF And Additional Debt

Hey all… had a question this morning that asked the affect of additional debt to the FCFF model… and it said no affect If I think logically about it I assume issuing additional debt would increase interest expense… or am I thinking about it incorrectly and it is if the company buys debt it increases interest expense?

Not a tough one, but want to make sure I think about it correctly. thanks all!

FCFF is not impacted by capital structure changes… in my mind, it’s easier to think about it starting with EBIT… the amount of interest expense is not going to change EBIT in any way.