In the company I worked in last summer, they used net debt when calculating the WACC.
Assuming you have negative net debt (i.e. net cash). How would you incorporate this into the WACC.
(A) Just assume net debt to be zero. Thus, WACC = Cost of equity
(B) Assume net debt to be zero but subtract interest on cash deposits
(C) Use total debt instead of net debt
In general, is the industry standard to use net debt or total debt?