Cross Country Movers has just gone public. Under a firm commitment agreement, the firm received $19.84 for each of the 2.12 million shares sold. The initial offering price was $24.40 per share, and the stock rose to $25 per share in the first few minutes of trading. The company paid $626,000 in legal and other direct costs and $105,000 in indirect costs. What was the flotation cost as a percentage of the funds raised?