(Solved): Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer ...

Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $\$10$ per share. The underwriting spread was $\$0.70$ a share. The price of the stock closed at $\$13.00$ per share at the end of the first day of trading. The firm incurred $\$500,000$ in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.