Deep Hollow Oil Issued 135,000 Shares of Stock Last Week

Deep Hollow Oil issued 135,000 shares of stock last week.The underwriters charged a spread of 8.05 percent in exchange for agreeing to a firm commitment.The legal and accounting fees amounted to $418,000 and the company incurred $48,000 in indirect costs.The offer price was $33 a share.Within the first hour of trading, the stock price increased to $36 a share.What was the flotation cost as a percentage of the funds raised?

A) 28.89 percent
B) 33.03 percent
C) 26.47 percent
D) 20.55 percent
E) 33.87 percent