Share Repurchase and Dividends on FCF

CFA Level II Equities
#1

Hello.

I am trying to intuitively understand why share-repurchases/dividends have no effect on FCFF/FCFE (I know from a formula perspective it does not change anything) but can someone explain qualitatively why this is so?

If I was to issue dividends, does cash not decrease and therefore the amount available? Same goes for a share issuance, resulting in an increase in cash?

Thanks

#2

My Understanding is this: Dividend repurchase and cash dividends are uses of FCF. The point we are is the point at which we compute the FCF. We can’t be talking about its uses without first computing it.