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Under a firm commitment agreement, Tonga Trucks Inc. went public and received $30.25 for each of the 6.9 million shares sold. The initial offer price

Under a firm commitment agreement, Tonga Trucks Inc. went public and received $30.25 for each of the 6.9 million shares sold. The initial offer price was $33 and the stock rose to $35.11. The company paid $560,000 in direct flotation costs and $215,000 in indirect costs. What was the flotation cost as a percentage of funds raised?

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