Under a firm commitment agreement, Zeke, Co. went public and received $33.50 for each of the 8.2 million shares sold. The initial offer price was $36.00 and the stock rose to $39.63. 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. 24.23%
• B. 7.69%
• C. 29.85%
• D. 28.29%
• E. 18.63%