he Verbatim Co. has just gone public. Under a firm commitment agreement, Verbatim received $20.75 for each of the 6.56 million shares sold. The initial offering price was $22.60 per share, and the stock rose to $29.11 per share in the first few minutes of trading. Verbatim paid $906,000 in legal and other direct costs and $181,000 in indirect costs. Required: What was the flotation cost as a percentage of funds raised