High Mountain Gear Issued 240,000 Shares of Stock Last Week

High Mountain Gear issued 240,000 shares of stock last week.The underwriters charged a 7.85 percent spread in exchange for agreeing to a firm commitment.The legal and accounting fees were $385,000.The company incurred $98,000 in indirect costs related to management time and other internal expenses.The offer price was $21 a share.Within the first hour of trading,the stock was selling for $23.20 a share.What was the flotation cost as a percentage of the funds raised?

A) 21.53 percent
B) 25.29 percent
C) 27.46 percent
D) 33.80 percent
E) 41.22 percent