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
 

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