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3.4 CLASSIFICATION OF CASH FLOWS RELATED TO THE COST OF FINANCING. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense

3.4 CLASSIFICATION OF CASH FLOWS RELATED TO THE COST OF FINANCING. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense on debt as an operating activity but classifies cash expenditures for dividends to shareholders as a financing activity. Explain this apparent paradox

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