The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.67 for each of the 15 million shares sold. The initial offering price was $19 per share, and the stock rose to $23.18 per share in the first few minutes of trading. Raven paid $900,000 in direct legal and other costs and $320,000 in indirect costs. What was the flotation cost as a percentage of funds raised?