Under a firm commitment agreement, Zeke, Co. went public and received $29.25 for each of the 6.5 million shares sold. The initial offer price was $31 and the stock rose to $33.50. The company paid $540,000 in direct flotation costs and $205,000 in indirect costs. What was the flotation cost as a percentage of funds raised?

Under a firm commitment agreement, Zeke, Co. went public and received $29.25 for each of the 6.5 million shares sold. The initial offer price was $31 and the stock rose to $33.50. The company paid $540,000 in direct flotation costs and $205,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 23.99% 22.74% 6.29% 19.72% 14.98%