Moonscape has just completed an initial public offering. The firm sold 5 million shares at an offer price of $8 per share. The underwriting spread was $.30 a share. The price of the stock closed at $12 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?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)