The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley Oakley received $31.75 for each of the 7.3 million shares sold. The initial offering price was $34 per share, and the stock rose to $43.85 per share in the first few minutes of trading. Wiley Oakley paid $1,350,000 in legal and other direct costs and $210,000 in indirect costs.(Enter your answer as directed, but do not round intermediate calculations.)
Required:
What was the flotation cost as a percentage of funds raised?