The Green Hills Co. has just gone public. Under a firm commitment agreement, Green Hills received $29.96 for each of the 7.5 million shares sold. The initial offering price was $32 per share, and the stock rose to $34.56 per share in the first few minutes of trading. Green Hills paid $1,950,000 in direct legal and other costs and $425,000 in indirect costs. What was the flotation cost as a percentage of funds raised?