Moonscape has just completed an initial public offering. The firm sold $4$ million shares at an offer price of $$10$ per share. The underwriting spread was $$0\mathrm{.}60$ a share. The price of the stock closed at $$14\mathrm{.}00$ per share at the end of the first day of trading. The firm

$6$

incurred $$400,000$ in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

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Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

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Flotation cost as percent of funds raised

$\%$

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