Moonscape has just completed an initial public offering. The firm sold three million shares at an offer price of $8 per share. The underwriting spread was $0.6 a share. The price of the stock closed at $10 per share at the end of the first day of trading. The firm incurred $120,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Round your answer to 1 decimal place.)

Flotation costs %