Bellevue Co. has just gone public. Under a firm commitment agreement, the companyreceived $15.50 for each of the 20 million shares sold. The initial offering price was $17.10 per shareand the stock rose to $19.90 per share in the first few minutes of trading. The companypaid $620,000 in direct legal and other costs and $210,000 in indirect costs.

What was the flotation cost as a percentage of funds raised? (Round to two decimal places)