The Attar Co. has just gone public. Under a firm commitment agreement, Attar received $18 for each of the 2 million shares sold. The initial offering price was $19 per share, and the stock rose to $23 per share in the first few minutes of trading. Attar paid $400,000 in direct legal and other costs, and $200,000 in indirect costs. What was the flotation cost as a percentage of funds raised?