In your job interview with the investment bank Soldman Gachs, the managing director asks how financing related transactions affect a firm's unlevered Free Cash Flows $($FCFs$).$ Which statement is most likely true?

Question $6$ options:

Equity issuance has a negative effect on the unlevered FCFs$.$

Financing$-$related transactions have no effect on the unlevered FCFs$.$

Dividends have a negative effect on the unlevered FCFs$.$

Debt issuance has a negative effect on the unlevered FCFs