The Wiley OakleyCo. has just gone public. Under a firm commitment agreement, the company received $21.35 for each of the 6.62 million shares sold. The initial offering price was $23.20 per share, and the stock rose to $29.71 per share in the first few minutes of trading. The company paid $912,000 in legal and other direct costs and $187,000 in indirect costs.

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