Finance AI Skill

Capital Structure Optimization

Analyze and optimize the mix of debt, equity, and retained earnings to minimize weighted average cost of capital (WACC) while maintaining financial flexibility and target credit ratings. Use when evaluating capital structure changes, calculating WACC, assessing debt capacity, modeling leveraged vs. unleveraged scenarios, planning recapitalization, or determining optimal dividend policy. Triggers on phrases like "capital structure", "WACC", "optimal debt ratio", "debt capacity", "cost of capital", "leverage ratio", "recapitalization", "debt equity mix", "financial flexibility".