The Titanic Co. has just gone public. Under a firm commitment agreement, Titanic received \($14\) for each of the 1.5 million shares sold. The initial offering price was \($15\) per share, and the stock rose to \($17\) per share in the first few minutes of trading. Titanic paid \($300,000\) in direct legal and other costs, and \($150,000\) in indirect costs.

What was the flotation cost as a percentage of funds raised?