The Cypress Co. has just gone public. Under a firm commitment agreement, the company received $20.46 for each of the 12 million shares sold. The initial offering price was $22 per share, and the stock rose to $27.85 per share in the first few minutes of trading. The company paid $1.65 million in direct legal and other costs and $375,000 in indirect costs. What was the flotation cost as a percentage of funds raised?