Dividends, share repurchases, and share issuance do not affect FCFF and FCFE. The reason for this is that FCFF and FCFE are cash flows available to investors, while dividends and share repurchases are uses of these cash flows. Therefore, the transaction between the company and its shareholders (through cash dividends, share issuances, and share repurchases) does not affect free cash flow.
This means even if some cash is used say to buyback some shares, FCFF and FCFE won’t get affected as those are the funds avaliable for shareholder and it wont been shown net off. am i thinking correct?
Transactions related to shareholders are reflected at CFF so not reflected while computing FCFF/E because here we consider CFO.
Hope this helps you!