Franklin Oil Issued 150,000 Shares of Stock Last Week

Franklin Oil issued 150,000 shares of stock last week.The underwriters charged a 7.5 percent spread in exchange for agreeing to a firm commitment.The legal and accounting fees amounted to $310,000 and the company incurred $65,000 in indirect costs.The offer price was $31 a share.Within the first hour of trading,the stock price increased to $34 a share.What was the flotation cost as a percentage of the funds raised?

A) 20.89 percent
B) 24.03 percent
C) 24.47 percent
D) 26.55 percent
E) 29.89 percent