Calculating Flotation Costs the Huff Co, has just gone public. Under a firm commitment agreement, Huff received $15.05 for each of the 5 million shares sold. The initial offering price was $26 per share, and the stock rose to $19.50 per share in the first few minutes of trading. Huff paid $800,000 in direct legal and other costs, and $250,000 in indirect costs, what was the flotation cost as a percentage of funds raised?