The Frampton Co. has just gone public. Under a firm commitment agreement, Frampton received $22 for each of the 4.1 million shares sold. The initial offering price was $23.65 per share, and the stock rose to $28 per share in the first few minutes of trading. Frampton paid $780,000 in legal and other direct costs, and $250,000 in indirect costs. What was the flotation cost as a percentage of funds raised?