Circle is considering acquiring Square. Squares expected net cash flows for the first 4 years of the post-merger period are $500,000 in year 1, $600,000 in year 2, $700,000 in year 3, and $800,000 in year 4. After 4 years, the net cash flows are expected to grow at a constant rate of 5% per year forever. Circle believes the appropriate cost of capital to discount these cash flows is 12%. Square has $3 million in debt and 600,000 shares outstanding each priced at $7.87 in the market. a) What is Squares terminal value? b) What is Squares firm value to Circle? c) What is Squares equity value to Circle? d) What is the value of Squares stock price to Circle? e) Determine the merge premium if the offer price is $9.25.