The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley received $31.75 for each of the 7.75 million shares sold. The initial offering price was $34 per share, and the stock rose to $43.85 per share in the first few minutes of trading. Wiley paid $1,350,000 in legal and other direct costs and $210,000 in indirect costs. What was the flotation cost as a percentage of funds raised?