Under a firm commitment agreement, Zeke, Co. went public and received $33.25 for each of the 8.1 million shares sold. The initial offer price was $36 and the stock rose to $39.38. 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?

Multiple Choice

• 8.50%

• 30.94%

• 24.93%

• 18.78%

• 29.33%