Bellevue Co. has just gone public. Under a firm commitment agreement, the company received $18.40 for each of the 15 million shares sold. The initial offering price was $20.00 per share and the stock rose to $25.60 per share in the first few minutes of trading. The company paid $520,000 in direct legal and other costs and $160,000 in indirect costs. What was the flotation cost as a percentage of funds raised