Question: Calculating Flotation Costs. The Collins Co. has just gone public. Under a firm commitment agreement, the company received $22.32 for each of the 9.5 million shares sold. The initial offering price was $24 per share, and the stock rose to $27.50 per share in the first few minutes of trading. The company paid $1,475,000 in legal and other direct costs and $350,000 in indirect costs. What was the flotation cost as a percentage of funds raised?