In a previous post I discussed the basics of Facebook’s capital structure and how its equity-based capital structure could use a boost from the relative inexpensiveness of debt. Facebook is in a great financial position. Its EBIT (operating income) will continue to grow in the years ahead, and with rates around historical lows, debt would be a very cheap addition to its current capital base. Facebook would be best off at around a 85/15 equity-to-debt split to minimize its cost of capital.The chart below displays the projected intrinsic value of FB’s shares at all debt-to-equity ratios (calculated as debt over total capital, or D / (D + E)). I median-value FB at $94 per share, or about 18% shy of its $114 market price at the time of this writing. A debt issuance up to optimal levels could boost this intrinsic value close to the $99 per share mark:Below is a display of the WACC vs. D/E ratio chart, which I think is helpful in visualizing how a company should best design its capital structure. This is a common diagram bankers look at when considering restructuring situations.