The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 27.75 for each of the 5 million shares sold. The initial offering price was $30.53 per share, and the stock rose to $41.22 per share in the first few minutes of trading. Raven paid $750,000 in direct legal and other costs, and $195,000 in indirect costs. What was the flotation cost as a percentage of funds raised?