Moonscape has just completed an initial public offering The firm sold 3 million shares at an offer price of $10 per share. The underwriting spread was $.70 a share. The price of the stock closed at $16 per share at the end of the first day of trading. The firm incurred $400, 000 in legal administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculation. Enter your answer as a percent rounded to 2 decimal places.)