Franklin Oil issued 150,000 shares of stock last week. The underwriters charged a 7.5 percent spread in exchange for agreeing to a firm commitment. The legal and accounting fees amounted to $310,000 and the company incurred $65,000 in indirect costs. The offer price was $31 a share. Within the first hour of trading, the stock price increased to $34 a share. What was the flotation cost as a percentage of the funds raised?

20.89 percent

24.03 percent

24.47 percent

26.55 percent

29.89 percent