The Raven Company has just gone public. Under a firm commitment agreement, Raven received 25.00 for each of the 6 million shares sold. The initial offering price was $26.50 per share, and the stock rose to $31.80 per share in the first few minutes of trading. Raven paid $1,140,000 in direct legal and other costs, and $353,000 in indirect costs. What was the flotation cost as a percentage of funds raised?