Principles of Finance: Financial Statements and Time Value of Money

This lecture covers the basics of financial statements, focusing on the balance sheet and income statement. It explains how firms evaluate their performance and communicate with investors through financial statements. Additionally, it delves into the concept of the time value of money, illustrating how money's worth changes over time due to interest rates and compounding. The lecture emphasizes the importance of understanding the time value of money in making investment decisions and highlights the law of one price in financial markets.