The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $21.25 for each of the 6.61 million shares sold. The initial offering price was $23.10 per share, and the stock rose to $29.61 per share in the first few minutes of trading. The company paid $911,000 in legal and other direct costs and $186,000 in indirect costs.
What was the flotation cost as a percentage of funds raised?