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Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $ 1 0 per share. The

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.
Flotation cost as percent of funds raised
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