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What were flotation costs as fraction of funds raised

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Reference no: EM131545417

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.)

Reference no: EM131545417

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