UR-Wealthy Co. recently raised several million dollars in an initial public offering. The bid price was $22.00 per share and the ask price was $25.00 per share, and the market price rose to $28.00 on the first day of trading. 1.3 million shares were sold in the offering, and the company paid other costs of $575,000. The total (direct and indirect) flotation cost in this offering as a percentage of the gross proceeds was: