Which of the Following Statements About Determining the Appropriate Cost

Which of the following statements about determining the appropriate cost of capital for a foreign subsidiary of a U.S. corporation (owned by U.S. investors) is true?

A) It is both simpler and more appropriate to use the cost of capital of the U.S.-based operations to evaluate projects to be undertaken by a foreign subsidiary.
B) A U.S. corporation should consider how its foreign operations covary with the U.S. stock market when calculating the cost of capital for a foreign subsidiary.
C) A U.S. corporation should consider how its foreign subsidary's cash flows covary with the exchange rate for the currency of the country in which that subsidiary is located when
Calculating the cost of capital for a foreign subsidiary.
D) In calculating a foreign subsidiary's cost of capital, a U.S. corporation needs to determine how its projects covary with the global market.