The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $20.55 for each of the 6.54 million shares sold. The initial offering price was $22.40 per share, and the stock rose to $28.91 per share in the first few minutes of trading. The company paid $904,000 in legal and other direct costs and $179,000 in indirect costs. What was the flotation cost as a percentage of funds raised?