Franklin Oil issued 150,000 shares of stock last week. The underwriters charged a 7.5 percent spread in the exchange for agreeing to a firm commitment. The legal and accounting fees amounted to 310,000 and the company incurred $65,000 in indirect costs. The offer price was $31 a share. Within the fist hour o trading, the stock price increased to $34 a share. What was the flaotation cost as a percentage of the funds raised?