The Pickle Jar issued 300,000 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 were $420,000. The company incurred $110,000 in indirect costs related to management time and other internal expenses. The offer price was $14 a share. Within the hour of trading, the stock was selling for $17.50 a share. What was the flotation cost as a percentage of the funds raised