The Sugarland Co. has just gone public. Under a firm commitment agreement, the company received $17.67 for each of the 27 million shares sold. The initial offering price was $19 per share, and the stock rose to $24.80 per share in the first few minutes of trading. The company paid $1,475,000 in legal and other direct costs and $350,000 in indirect costs. What was the flotation cost as a percentage of funds raised?