leverage and FCFE

[afranks1]

In a year you have higher leverage, FCFE overall increases since you have more net borrowings. Is this correct?
Or is it: In a year you have higher leverage, you pay more interest and as a result FCFE overall decreases?

 

[Would You Look]

If net new borrowing > Interest(1-t), then FCFE would go up (all else constant)

 

[afranks1]

most of the time net borrowing will be > interest (1-t) right?

 

[FrankCFA]

afranks1 wrote:
In a year you have higher leverage, FCFE overall increases since you have more net borrowings. Is this correct?
Or is it: In a year you have higher leverage, you pay more interest and as a result FCFE overall decreases?

As you mention above, leverage can affect FCFE but do not certainly have positve or nagative relation.