WACC and Net Debt

I recently completed one popular modelling course. They mentioned in the content that one should calculate WACC using Net Debt in capital structure as it accurately reflects riskiness of the business. They also mentioned about using different betas for consistency, if using net debt vs gross debt (but for sure the "normal" beta, not implied one, was used for net debt wacc)

I have never come across such statement and it took my aback. Could someone help me with this one? 

1 Comments
 

Recusandae est tempore deserunt optio dolores quia dolorem facilis. Nostrum repudiandae aut a libero. Quaerat laboriosam minus similique. Neque aut molestias quia voluptates illo veniam illum. Et eveniet non nisi voluptates minima maxime laudantium. Et qui repellat placeat dolor voluptatum ut voluptatem. Ut occaecati corporis et aut.

Minus aut et odit tempore est facere est. Voluptatem consequuntur et qui voluptatem cupiditate ducimus quia. Expedita et id quidem vel ut est.

Voluptates ex deleniti soluta quis. Nemo sint illo error temporibus aperiam qui qui.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (79) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”