Kurts Campers issued 60,000 shares of stock last week, received $31.54 a share, and incurred direct costs of $328,000. The offer price was $34 a share. Within the first hour of trading, the stock price increased to $36 a share. What was the flotation cost as a percentage of the funds raised?

Multiple Choice

• 38.07%

• 33.49%

• 27.92%

• 36.33%

• 29.04%