McDonald's Corporation Hedges Its Investments in International Subsidiaries

Multiple Choice

McDonald's Corporation hedges its investments in international subsidiaries. All subsidiaries have a positive position in net assets. The hedge gains and losses are reported in other comprehensive income. For the subsidiaries located in euro countries, which statement is true?

A) McDonald's can hedge its investments with euro-denominated borrowings.
B) McDonald's remeasures the accounts of these subsidiaries before consolidating them.
C) If the U.S. dollar weakens against the euro, McDonald's will show translation losses on the subsidiaries.
D) If the U.S. dollar is expected to strengthen against the euro, McDonald's will be motivated to do less hedging of its investments in subsidiaries.