The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 16.25 for each of the 4 million shares sold. The initial...

The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 16.25 for each of the 4 million shares sold. The initial offering price was $18.04 per share, and the stock rose to $21.47 per share in the first few minutes of trading. Raven paid $600,000 in direct legal and other costs, and $174,000 in indirect costs. What was the flotation cost as a percentage of funds raised?