The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 20.50 for each of the 6 million shares sold. The initial offering price was $22.35 per share, and the stock rose to $29.05 per share in the first few minutes of trading. Raven paid $960,000 in direct legal and other costs, and $269,000 in indirect costs. What was the flotation cost as a percentage of funds raised?

P15-7 Calculating Flotation Costs [LO3] The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 20.50 for each of the 6 million shares sold. The initial offering price was $22.35 per share, and the stock rose to $29.05 per share in the first few minutes of trading. Raven paid $960,000 in direct legal and other costs, and $269,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 43.14% 33.23% 10.12% 44.86% 41.41%