The Green Hills Co. has just gone public. Under a firm-commitment agreement, Green Hills received $22.70 for each of the 8 million shares sold. The initial offering price was $24 per share, and the stock rose to $29.30 per share in the first few minutes of trading. Green Hills paid $1,058,000 in direct legal and other costs and $278,800 in indirect costs. What was the flotation cost as a percentage of funds raised? (Round the answer to 2 decimal places.) Flotation cost