The Bostitch Co. has just gone public. Under a firm commitment agreement, Bostitch received $32.70 for each of the 4.17 million shares sold. The initial offering price was $35.10 per share, and the stock rose to $42.40 per share in the first few minutes of trading. Bostitch paid $912,000 in legal and other direct costs and $264,000 in indirect costs. What was the flotation cost as a percentage of funds raised?