The Rouge Co. has just gone public. Under a firm commitment agreement, Rouge received $17.30 for each of the 15 million shares sold. The initial offering price was $21.00 per share, and the stock rose to $23.40 per share in the first few minutes of trading. Rouge paid $540,000 in direct legal and other costs, and $170,000 in indirect costs.

What was the flotation cost as a percentage of funds raised?