The Collins Co. has just gone public. Under a firm commitment agreement, the company received $33.60 for each of the 4.26 million shares sold. The initial offering price was $36.00 per share, and the stock rose to $44.20 per share in the first few minutes of trading. The company paid $921,000 in legal and other direct costs and $282,000 in indirect costs.
What was the flotation cost as a percentage of funds raised? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Flotation cost percentage %