Calculating Flotation Costs The Green Hills Co. has just gone public. Under a firm commitment agreement, Green Hills received $26.04 for each of the 7 million shares sold. The initial offering price was $28 per share, and the stock rose to $32.30 per share in the first few minutes of trading. Green Hills paid $1,850,000 in direct legal and other costs and $370,000 in indirect costs. What was the flotation cost as a percentage of funds raised?