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 $0.40 a share. The price of the stock closed at $14.00 per share at the end of the first day of trading. The firm incurred $200,000 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.)

Answer: .45 or 45% is incorrect