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 $$0\mathrm{.}70$ a share. The price of the stock closed at $$13\mathrm{.}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.

Flotation cost as percent of funds raised