Under a firm commitment agreement, Zeke, Co. went public and received $31.00 for each of the 7.2 million shares sold. The initial offer price was $33 and the stock rose to $35.86. 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?

a-6.73%

b-24.43%

c-25.78%

d-16.08%

e-21.11%