Pardon Me, Inc. recently issued new securities to finance a television show. The project cost $30 million. The equity issued had a flotation cost of 7% of the amount raised, whereas the debt issued had a flotation cost of 3% of the amount raised. Assuming the company issued new securities in the same proportion as its target capital structure, and Pardon Me has a debt to equity ratio of 0.35, calculate flotation costs. (Round to the nearest whole number)