In business valuation, our estimate of a company's value depends partly on the discount rate (k) that is used to discount future cash flows.One way in which k is important is that it is an input in the constant growth model used to compute terminal value, since terminal value = next year's free cash flow divided by (k - g).Which of the following is the most accurate statement about the overall impact of k on the company's current value?

An increase in k by 1 percentage point has a larger impact on a companys current value than a 1 percentage point decrease in g.

An increase in k by 1 percentage point has the same impact on a companys current value as a 1 percentage point decrease in g.

An increase in k by 1 percentage point has a smaller impact on a companys current value than a 1 percentage point decrease in g.

The impact on a companys current value of an increase in k by 1 percentage point cannot be determined.